Head of Smolensk's Kristall proposes consolidation of Russian diamond industry
MOSCOW. Aug 19 (Interfax) - The head of Smolensk-based Kristall, the largest diamond producer in Russia, Maxim Shkadov, is suggesting that a vertically integrated structure that unites all three sections of the diamond pipeline - diamond mining, diamond production and the sale of jewelry - be created.
He said this during a press conference in Smolensk, excerpts of which were cited by the media.
"The best way out of this position could be the creation of a vertically integrated structure that would unite all stages of production - from diamond mining to selling jewelry," the head of Kristall said.
This initiative was discussed during a Monday meeting between Deputy Prime Minister Yury Trutnev and Smolensk Region Governor Alexei Ostrovsky. At the meeting, "an understanding was reached that Kristall would prepare its proposals for the future development of the sector and a decision on the future of the enterprise could be made taking the region's interests into account," Shkadov said.
A representative of Trutnev confirmed the meeting and did not deny that ideas had been discussed concerning the consolidation of the diamond sector. The representative did not disclose details of the meeting.
Alrosa , the Russian diamond mining monopoly did not comment on the situation.
