First quarter of 2007 sales at Smolensk Kristall rose 49 percent to $97 million the company reported. Russia-controlled Kristall attributed the record growth in sales to increased marketing initiatives and higher quality goods sold for the period ending March 31, 2007.

Kristall focused more on "client-oriented" marketing during the quarter. "This was reflected in the realization of joint ventures with jewelry companies, the preparation of special orders for diamonds and the development of Internet trading," according to a company statement.

Rough market speculation remained a concern at Kristall, which could have a negative effect on the diamond industry on the whole in the near future the statement concluded.