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Indian investor to open diamond production in Far East

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Leading producer of diamonds Indian KGK Corp. will open a factory in Primorye at the Eastern Economic Forum in September, said Deputy Prime Minister - Plenipotentiary in the Far Eastern Federal District Yuri Trutnev at Minvostokrazvitiya.

"An agreement has been reached with KGK. They met with representatives of ALROSA, discussed the volumes of supplies. They will open the enterprise at the Eastern Economic Forum. For this purpose, the equipment has already been delivered. There's quite a complex program of staff training. At first there will be quite a lot of their workers, but they will train and change the proportions in our favor," Yuri Trutnev said.

Monthly, the production of the closed technological cycle will process up to 9 thousand carats of rough diamonds, purchased from ALROSA. The Indian investor plans to build a factory for cutting diamonds in Primorye in two years. The volume of investments in the project amounted to 496.6 million rubles.

Other large companies, for example, Tiffany, are ready to open their branches in the Far East, said Trutnev. However, they are now in standby mode.

"Some things need to be changed to make it profitable for foreign companies to work in Russia, - said the Deputy Prime Minister. - For example, to remove VAT, export duties on stones and other barriers that kill margins."

According to the Vice-Premier, the management of ALROSA does not object to such measures. "We spoke on this subject with Sergei Ivanov (ALROSA President) and he understands that if foreign companies come to Russia, they will need to be given preferences in the acquisition of ALROSA stones, sorting, or supplies,” – said the Vice-Premier.

Today, diamond cutting and jewelry industry in Yakutia are in crisis. The production of polished diamonds in the republic fell by 35% in 2016. Workload of jewelry industries is no more than 46%.

The Far East Дальний Восток