Arcos Hong Kong Ltd., a subsidiary of Alrosa Group, opened in the Bank of China Tower, Hong Kong, on the March 6, 2006. Present on the occasion were Yury A. Dudenkov, vice president of Alrosa, Peter Ouling Glogoliev, first vice president and executive director of operations, Maxim A. Shkadov, general director of Kristall Smolensk, and Governor Victor N. Maslov of the Smolensk region of the Russian Federation.Andrey N. Smorodin. The Consul General of the Russian Federation in Hong Kong introduced the officials presiding at the opening ceremonies.

David Pong, the chairman of the Diamond Federation of Hong Kong China Ltd., welcomed Arcos to the region taking pleasure in acknowledging close ties between Hong Kong and Russia. Vladlen D. Nogovitsyn will head the new company, which will promote rough and polished diamonds as well as jewelry in Hong Kong. Arcos plans to develop marketing programs specifically for the Asian and Chinese markets. The company believes there is a good potential for selling Russian diamonds as new brand to capture the markets that are developing rapidly.

Both Alrosa and Kristall Smolensk are backing Arcos� endeavor to promote the sale of rough to smaller diamond manufacturers in China. The supply of rough is tight with little change expected in coming years, so Arcos� presence in China was well-received.
Kristall Smolensk was also celebrating the relocation of its subsidiary Smolensk Diamonds Asia to the same office as Arcos Hong Kong. Paul Cheung --former manager of the Diamond Trading Company�s Hong Kong branch-- will now head Smolensk Diamond Asia.