The Russian diamond company ALROSA is close to signing a trade agreement with the Chow Tai Fook Jewellery Group, which is developing the largest jewelry brand in China, Hong Kong and Macau. Based in Hong Kong, this company plans to buy diamonds from Russia for at least $100 million annually, RIA Novosti reported citing The Kommersant newspaper. In the long term Chow Tai Fook may turn into a serious rival for Indian diamond cutters, currently processing one half of Russia’s diamond output.
The source noted that the issue was a long-term trade contract. Although Chow Tai Fook is eager to procure rough diamonds worth over $100 million per year, ALROSA would prefer to start working in a test mode on this initial stage.
But in this situation, the important aspect is the start of relationship with China's largest producer of diamonds and diamond goods. The source refused to clarify possible amounts of diamonds to be supplied to China and other details of the maturing contract.
A source in the Supervisory Board of ALROSA told The Kommersant that on Friday, the Board’s meeting will discuss the current situation in the company’s sales policy, including, among other things, geographic diversification of diamond sales. According to the source, the contract with Chow Tai Fook Jewellery Group could be signed in early November.
ALROSA declined any official comments.
Chow Tai Fook’s spokespersons were unavailable for comment.
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