Vladimir Rybkin, Head of Gohran of the Russian Federation, answered the questions put by the correspondent of Rough&Polished.

What amount of rough diamonds is currently held by Gokhran?

The stocks held by Gokhran are a state secret and this information cannot be published, but it is possible to say that in the past three years they increased approximately by 30 billion roubles.

To what extent has the value of rough diamonds bought by Gokhran from ALROSA during the crisis period now increased?

Indeed, because we bought the diamonds at prices which existed on the market in the painful period, since then their value has increased. If we consider the result based on the total of two years (2008–2009) the growth is just a bit less than 5%. But the essence of those transactions was not to obtain profit but to support ALROSA.

Will ALROSA be able to do without Gokhran’s support this year?

I think that this year the company will not yet be able to do it, though probably it will not need the whole amount of help envisaged for it - about 30 billion roubles.

Does Gokhran plan to sell large amounts of rough diamonds now that prices are going up?

Gokhran is not an independent participant of the diamond market and our task is to fill in the national budget to the extent established by the decisions of the Russian Federation Government. As for diamonds bought in 2008–2009, we shall not sell them during this or the following year. It is a great amount since we never bought in such quantities, and we have to do a long work to sort and evaluate them. They will probably reach the market in 2012 or 2013.

What is your outlook for the diamond market?

I hope that starting already from the second half of this year its upward movement will become irreversible and by the beginning of 2012 diamond prices will be established at the 2007 level.

Galina Semyonova, Rough&Polished