In private talks with leaders of the Israel diamond industry, Russia has reaffirmed its intentions to strengthen ties with Ramat Gan. Shmuel Schnitzer, President of the World Federation of Diamond Bourses (WFDB) and former President of the Israel Diamond Exchange, and Moti Ganz, President of the Israel Diamond Manufacturers’ Association, were invited to Mirny last month for Alrosas 50th anniversary celebrations. During their visit, Schnitzer and Ganz met Aleksey Leonidovich Kudrin, Finance Minister of the Russian Federation; Alexander Nichiporuk, President of Alrosa and Vyacheslav Anatolievich Shtyrov, President of the Republic of Sakha (Yakutia). They were told of Russias interest in increasing its rough sales to Israel and in establishing joint diamond polishing factories in Russia with third countries.

In light of the possible limitations that the European Competition Network (ECN) is set to impose on rough sales by Russian state diamond company Alrosa to De Beers, Russia seems committed to strengthening its ties with Israel. The Russian government also intends to lift the export quota on diamonds which Alrosa has to uphold until 2007.%%Alrosa President Nichiporuk told the Israeli Diamond Controller, Shmuel Mordechai, in his visit to Russia earlier this year, that Russia will substantially increase its direct and indirect rough export to Israel during the coming years.%%Nichiporuk, who visited Israel, in April said that the Israel diamond center, which consumes more than half of the rough diamonds produced by Alrosa, is an important business partner for the company. During his visit, Nichiporuk announced of a new partnership between Alrosa and Dan Gertler in a joint project in Africa. He added that Alrosa was seeking additional business relationships with Israel.%%Overall, Israeli exports to Russia mainly include high tech and communications products, chemicals, plastic and food. During 2004, Israel exported to Russia a total of $420 million. Israel imports from Russia, mainly raw materials and metals, reached a total of $880 million in 2004.