Israel Requests $300 Million in Rough Supply from Alrosa (Updated)
March 23, 10 by Edahn Golan
Alrosa has agreed in principle to a request from Israel for $300 million in direct rough diamond supplies, the Israeli Ministry of Industry, Trade and Labor announced Tuesday.
Israel’s request from Alrosa was made by Minister Binyamin Ben Eliezer during a meeting in Moscow with Alrosa executives. Ben Eliezer, accompanied by a delegation from the Israeli diamond industry, met with Alrosa Vice President of Marketing Sergey Oulin, IDEX Online has learned.
Alrosa has made commitments in the past to supply rough diamonds directly to Israel, however they never materialized. Currently, Israeli diamond traders buy goods in Moscow based on availability and price. Israeli companies participate regularly in rough diamond tenders in Russia, including for 10.8 carat and larger goods, commonly referred to as ‘Specials’.
Israel Diamond Exchange President Avi Paz and Israel Diamond Manufacturers Association Vice President David De Toledo, who are part of the delegation to Russia, have invited the presidents of Alrosa and Gokhran to visit Israel.
Israel and Russia have never exposed the rough diamond trade levels between the two countries, and it is therefore not clear what effect the proposed supply will have on the current diamond trade.
Update: Israel imported $154.85 million worth of rough diamonds from Russia in 2009. However, purchases from Alrosa were minimal last year. Not only that rough traders and manufacturers curtailed their purchases during the tough economic year, but Alrosa was also for the most part an expensive supplier, locking its prices at pre-crisis levels
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(Last update March 23, 2010, 11:52 am)
