Russia: Tiffany snags deal with Alrosa for reported $60M of diamonds a year

Russian diamond miner Alrosa has reportedly signed a deal with Tiffany of New York to supply rough-cut diamonds in the first long-term agreement between the two entities. According to Alrosa chief executive Fyodor Andreyev, the partnership will be “permanent.” Sources say the deal includes a projection of $60 million in rough diamonds a year, for three years; experts say that with Tiffany’s ability to select the quality of their diamonds, the deal may lead to a supply of about 300,000 carats to the jeweler. Under current Russian competition law, however, diamond suppliers have to sell standard lots to everyone with whom they deal to prevent special treatment. A source says that if Alrosa allows for Tiffany to “cherry pick” their diamonds, some of Alrosa’s clients may leave, though the source did not suspect a major shakeup of competition in the market. Earlier this year, Alrosa announced it had signed a two-year supply agreement with diamond-cutter Chow Tai Fook of China.

Full Content: Business Insider

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