Crisis makes Russian diamond producers slash output

Amid the global turmoil, Russia is registering the biggest fall in diamond production in the world, ALROSA President Sergei Vybornov told the Troika Dialog organized Russia Forum 2009 today. “I don’t know yet if it’s good or bad - most likely the latter,” he said. Vybornov stressed, however, that a great number of major international companies were cutting back production, citing a 40-percent decline in output posted by De Beers.

According to Vybornov, in the wake of the crisis, gold and cut diamond sales dropped 40 percent in Russia while rising in the rest of the world. The ALROSA chief executive added that such developments had forced the company to put its pilot project to use diamonds as an investment product on hold.

Nevertheless, according to Vybornov’s estimates, Russia’s diamond mining industry has still managed to dodge a bullet compared to some other countries.