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A spokesperson for the company told Rosbalt that the auction would take place in August in the Almaznaya Palata of Russia. The decision to conduct the auction was made taking into consideration the presidential decree on the export and import of diamonds signed in November 2002.
According to the decree, organizations mining diamonds are given the right to export the diamonds of special sizes of 10.8 carats and larger if the diamonds were acquired by foreigners at an auction conducted in accordance with Russian Law.
Before the decree, diamonds of sizes 10.8 carats and larger were sold at auctions where only Russian producers of diamonds participated. Diamonds of particularly larger sizes, of 50 carats and more, were also exhibited at the auctions.
The new auctions will be conducted in a closed format. However, only foreigners like Congolese diamond producer André Action Jackson for example, along with Russian companies specializing in operations with large diamonds and having a strong reputation will be allowed to participate.
Alrosa is one of the largest diamond mining companies in the world and accounts for about 25% of the total diamonds mined in the world. In 2002 the company mined diamonds worth USD 1.466 billion. In 2003 the company plans to mine diamonds worth USD 1.560 billion. The largest shareholder in Alrosa is the Russian Property Ministry (37%) and the Yakutiya Property Ministry (32%).
