Alrosa�s delay in shipment purely logistical

Alrosa delivered significantly more rough in value to De Beerss Diamond Trading Company (DTC) in 2005 as, compared with 2004. The value for 2005 was around $696 million, 11% above 2004. Alrosas report for 2004 intentionally omits the figure for sales to the DTC, but lists total rough exports of $1,168 million.

Sales to the free market totaled $396 million, while sales to foreign buyers of +10 caraters, sales through Almazjuvelirexport auctions, and deliveries to CIS countries, such as Armenia and Belarus, totaled $143.3 million. The remainder of $628.7 million went to the DTC, although the figure is omitted from the Alrosa report. There have been rumors in the trade that shipments from Moscow to London slowed down markedly, or stopped, in November and December which was untrue. There was no interruption in the shipments. However, there were delays in London in the sorting process and on the agreement of valuations between Alrosa and the DTC.

For several years now, an Alrosa team of experts goes to London to process the arriving goods, and reach the agreement required before the diamonds can be officially received into the DTCs stocks. Before then, De Beerss sorting teams used to negotiate this process in Moscow, ahead of the shipping. "There was no sign of any disruption to purchases," a source close to the process confirmed. The delay in London was described as "purely logistical.