Gokhran Earmarks $1B for Rough Purchases from Alrosa

Two thirds of Gokhran's budget is earmarked to buy rough from Alrosa. Most of the rest will be used to buy gold from local producers

Russia's state precious metals and gemstones repository, Gokhran, has set aside $1 billion of its budget to purchase rough diamonds from Alrosa in 2010. Another $150 million are earmarked to purchase polished diamonds from Russia’s largest diamond polisher, Kristall of Smolensk.

Gokhran is a government body that purchases gold and diamonds from local producers and manufacturers, usually as a form of economic support.

Russia's federal budget has allocated 42.76 billion rubles ($1.47 billion) to purchase diamonds and gold in 2010.

The body plans to buy at least 2.5 tonnes of gold from producers in 2010, a Gokhran source told Interfax. “[W]e might manage to reach an agreement with more companies throughout the year and increase procurement,” the source said.