Russia Agrees to Remove Diamond Export Restrictions to Israel

Israeli Minister of Industry, Trade and Employment, Ehud Olmert, who is on a state visit to Russia, says Russia has agreed to supply Israel with rough diamonds.

In a news release this morning, the ministry reported that Olmert reached an agreement with the chair of the Israeli-Russian economic committee for Russia to supply Israel with rough diamonds. According to the release, Russia has not been willing to sell rough diamonds to Israel in the past, however the sides expressed an interest in removing restrictions to supply Israelis with rough diamonds.

The ministry added that Olmert met with Alrosa president Alexander Nichiporuk who noted that Alrosa is interested in seeing more Israeli companies buying Russian rough.

It should be noted that Israeli diamond companies buy rough diamonds from Russia on a regular basis and have been invited to Alrosa’s 10.8+ carat tenders held in Moscow jointly with the state precious stones and metals repository, the Gokhran.

Alrosa told IDEX Online today that the company is interested in developing co-operation with the Israeli diamond industry on the basis of transparency and equal access for Israeli firms to Russian rough diamonds.

The company added that the removal of export quotas [set by the government] will help in achieving this.

Olmert said the understandings will greatly help the Israeli diamond industry, and provides a solution for the industry's rough diamond demand.

About half of Russia’s exports to Israel in 2004, or $440 million, were diamonds.