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Rostec's Amber Combine signs agreement with Baltic stone processors

30 april 2025

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The Kaliningrad Amber Combine has signed an agreement with the Kaliningrad Region Amber Industry Cluster Association on raw material supplies, under which it will ship 24 tons of amber to the Association's enterprises by the end of 2025.

The agreement on raw amber supplies was signed on the territory of the Kaliningrad Amber Combine by its CEO Mikhail Zatsepin and Kirill Lilo, head of the Kaliningrad Region Entrepreneurship Support Center Foundation, which manages the regional amber industry cluster. The association unites 47 entrepreneurs and organizations involved in amber processing and manufacturing.

Under the agreement, the Amber Combine will ship 24 tons of raw amber of the sieve fraction (stones no larger than 16 mm) obtained through mechanical sorting. The entire volume will be delivered in 2025 in four equal lots, the first of which will be shipped in June. For the first time, the terms of the contract include a 25% discount on the list price for amber. The delivered lots will be distributed among the companies that are members of the Association. The key condition of the agreement was processing 100% of delivered amber in the territory of the Russian Federation.

The Governor of the Kaliningrad Region Alexey Besprozvannykh noted the demand for the practice of direct contracts between the Combine and the industry cluster and the growth of employment in the industry.

"This is an effective and transparent mechanism for providing local conscientious consumers with raw materials and guaranteed processing of this amber within the region," he said.

As a result, the value of processing increased last year, from 1.3 billion to 1.5 billion rubles.

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"For equal access to raw materials, all mined amber is sold only through open competitive trading procedures on the exchange and at auctions for processors. The mechanism of direct deliveries to companies that are members of the Association is an exception in the trade and sales policy of the factory. The goal of such contracts is to limit the resale of raw materials and support local processors. Under a direct contract, entrepreneurs receive raw materials in the required volume and at a fixed price. In total, under direct contracts over the past four years, we have shipped 55 tons of amber to the Association," CEO of the Amber Combine Mikhail Zatsepin said.

Rostec State Corporation has invested more than 3.5 billion rubles in the development of the Amber Combine, which was directed to the modernization of the mining complex, the acquisition and renewal of special equipment, creation of workplaces and a modern jewellery complex.

The Amber Combine produces about 600 tons of amber annually. In 2024, 578 tons of raw amber were sold on the exchange. Additionally, over the past year, over 11 tons of amber were purchased at eleven auctions by artists and entrepreneurs.

Galina Semyonova, Editor in Chief of the Russian Bureau, Rough&Polished