Russia's Alrosa eyes $1 bn diamond sales to India

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Russian state diamond monopoly Alrosa plans to supply about USD 1 billion worth of unpolished stones to India this year, enough to generate almost a third of its total revenues, an Alrosa spokesman said on Thursday.

Alrosa hopes to sign long-term supply deals with three Indian jewellery firms during Prime Minister Vladimir Putin's visit to India this week, a trip that is expected to yield deals worth a total of more than USD 10 billion.

The three companies - Diamond India Ltd, Ratilal Becharlal & Sons and Rosy Blue -- are expected to buy diamonds worth a total USD 490 million over the next three years, Alrosa spokesman Andrei Polyakov said.

Prices would be reviewed quarterly, he said.

The remainder of the USD 1 billion in 2010 sales would go to a range of separate Indian companies.

Russia aims to more than double trade with India to USD 20 billion by 2015. Deals to be struck during Putin's visit are expected to range from contracts to build nuclear reactors and fighter jets to oil exploration and fertiliser supply deals.

India processes about seven in every 10 of the world's diamonds. Alrosa, which produces about a quarter of the world's rough diamonds, expects to bring in revenues of USD 3.3 billion this year.