The government of Armenia and Alrosa—the Russian diamond monopoly and world’s largest diamond mining company— recently signed an agreement of cooperation pertaining to Armenia's diamond cutting sector. Armenian diamond cutting companies are increasing their rough diamond purchases from Alrosa and are expected to buy $50 million worth of rough diamonds from Alrosa in 2012, increasing the cap on the $30 million. Rough diamonds from Russia currently make up more than 50% of Armenia’s rough diamond imports and Alrosa currently accounts for 90% of rough diamonds supplies to Armenia and now boasts about twelve diamond manufacturing partners in Armenia.

According to the National Statistical Service of Armenia, the Armenian diamond-cutting sector increased its carat production by about 8.3% this year. The Armenian Economics Minister, Tigran Davtian, has stated that Alrosa has reached an agreement with Armenian diamond cutters to increase their diamond supplies.

"We hope that about 20 Armenian diamond processing enterprises will expand their activities, and for this we intend to seek new partners and suppliers of raw materials in addition to Alrosa", said Davtian.

Alrosa, who produced 19 million carats of diamonds during the first half of 2011, is also actively working with India. Surat Rough Diamond Sourcing Ltd. (SRDSIL), a consortium of Indian diamantaires, has recently made its first direct purchase of rough diamonds from Alrosa for $5.2 million, a venture that although formally regarded as a one-time allocation, is expected to lead to a long-term supply contract with the Russian diamond mining giant. SDRSIL plans on selling the rough diamonds to the Indian diamond cutting industry in December.

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