Dmitry Medvedev directed large diamonds to the Diamond Fund

Large rough and polished diamonds, as well as rough and polished diamonds having unique characteristics, will be directed to the Diamond Fund of Russia irrespective of their price.

Russia’s President Dmitry Medvedev approved a new edition of the Diamond Fund Regulations. Now, “rough diamonds weighing 50 carats and more, as well as diamonds having one or a number of unique characteristics (shape, rare unique color in combination with high clarity, character of inclusions and crystallographic contours) are subject to be taken to the Fund.”

Previously, “rough diamonds weighing 50 carats and more, as well as diamonds, unique in color, shape and quality (worth $3,000 and more per carat) were subject to be taken to the Fund.”
Similar changes have been introduced in relation to polished diamonds. Now “polished diamonds weighing 20 carats and more, as well as polished diamonds, unique in color, shape and quality”, irrespective of their price are subject to be taken to the Diamond Fund. Previously, polished diamonds of the same parameters were directed to the State Fund under the condition that they cost $10,000 and more per carat.

Diamond shares worth 36.7 billion rubles accrued to Russia’s property 

 Russia’s mighty position in economy continues consolidating. A recent example is the state holding Rostechnologii. Prime Minister Vladimir Putin has brought almost 500 companies, including both defense and commercial enterprises, under the control of one more state holding.
 Last year, state holdings started sprout like mushrooms after the summer rains, uniting certain sectors under one roof and stimulating production in these sectors.

Against this background, statements of vice-premier and Finance Minister of Russia, Alexey Kudrin, haven’t made a stir. A long-expected “federalization” of the diamond-mining company, has, at last, been completed. The Russian Federation has acquired additional ordinary nominal shares of ALROSA for the sum of 36 696 423 374,34 rubles that makes 19.9 percent of the company’s assets value.

The shares have been bought from ALROSA within the limits of an increase of the share of the Russian Federation in the company’s property up to 50 percent plus 1 share. The cost of company’s assets is estimated at 184 515 453 000 rubles, as of March 31, 2008.
In favour of the Russian Federation, ALROSA had previously redeemed from eight municipalities and the Republic of Sakha (Yakutia) shares of additional issue for the sum of 24 465 531 thousand rubles.
ALROSA’s shares have been transferred in accordance with the protocol “On protection of the state property in the diamond complex of the Republic of Sakha (Yakutia).”
It is not clear yet what way the public company ALROSA will choose. It is not inconceivable that a large mining company, completely controllable by the state, will be set on its basis.  
Not everyone in Russia likes such a scenario. Critics, whom, in particular, Edward Steiner from Die Presse quotes, say that the mechanism of such holdings functioning is not clear, they are fed on the state money and expand into something like superministries of the parallel state.
Holdings are one of the mechanisms of the state presence expanding in economy. Lately, the state stake in the raw sector of economy has increased by as much as 40 percent through reprivatization and assignment of control stocks.
On the other hand, these holdings are completely owned by the state and have a special status allowing them to implement joint projects with private investors, as well as make decision on the exchange trade in shares. They received assets from the state and - only last year - $27 billion. They can do business, however, are not obliged to be profitable; public control over them is insufficient. Putin assures that they will disappear in the near future, being completely privatized.