Alrosa may join the list of diamond miners who compete with their clients at the retail end by opening a chain of diamond jewellery stores, according to a report by the Russian newspaper. The Russian diamond miner plans to invest $50 million in the retail venture.

The report quotes the company’s president, Sergey Vybornov, as saying that Alrosa could open 50 stores in Moscow and other main cities within the next five years, using Armenia as a manufacturing base.

Alrosa will sell high-end jewellery for men, women and children with a starting price point of $800, the Vedomosty report adds.

The Russian Diamond Manufacturers Association vice president, Ararat Evoyan, called the retail venture a “reckless scheme” and said it would need over $50 million. Vybornov, however, said his aim was to increase demand for diamonds.

Meanwhile, Vybornov appointed Galina V. Klimenko as Alrosa’s vice-president, effective from May 18, 2007. She will be in charge of corporate development issues