A heap of diamonds presented at the opening ceremony of the Russian Diamond Chamber.
Photo: Dmitry Azarov
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Kremlin Doesn’t Let Alrosa-Nyurba Out
Russian Finance Ministry has recently forwarded to the Cabinet the draft ruling on granting the 2005 export quota to ALROSA-Nyurba in the fifth attempt to get such quota for the Russia’s second diamond producer. All previous attempts have been prevented by the presidential administration, Kommersant found out.
ALROSA-Nyurba was established in 1997. ALROSA holds 86.4 percent, Yakutia’s Property Relations Ministry – 10 percent. The Company explores and produces diamonds from the Nakynsky ore deposit, Yakutia. The worth of 2004 output reached $500 million.
The first attempt of Finance Ministry to get 2005 export quota for ALROSA-Nyurba was made past September. Although under the current laws, the quota should be provided in December, the document has been blocked so far by the legal department of the presidential administration.
All quota rulings are traditionally cloaked in secrecy. But Kommersant found out the tricky moment was the government’s ruling No. 1365 of 1998. The Finance Ministry strongly opposes its cancellation, as it is the sole document defining “the raw economically inexpedient for processing in Russia,” and the ministry refers to exactly this definition when grounding ALROSA-Nyurba’s quota.
The situation has been even more aggravated by the fact that ALROSA-Nyurba disposes of all its diamonds via the sales division of ALROSA. However, it is unable to export them under ALROSA’s quota (ALROSA was granted the 5-year quota in 2003), but has to attain its own annual quota for the second year running.
To-date, ALROSA-Nyurba has amassed diamonds worth nearly $140 million, all of them unfit for domestic sale. The diamond export appears to be artificially held up despite advantageous opportunities on the market, ALROSA’s briefer told Kommersant, adding the situation is at least provoking in view of the Russian plans to join the WTO. On the other hand, abolishment of all export quotas is one of the provisions for Russia’s entry into that organization, therefore, the existing quota possessed by ALROSA-Nyurba may turn out the last one in the history of Russian diamond market.
www.kommersant.com
All the Article in Russian as of July 12, 2005
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