RUSSIA�S President Vladimir Putin said he supported direct supplies of rough diamonds to India from Alrosa, the Russian state-run mining company. Putin, who recently concluded a two-day visit to India, noted that he had signed a decree earlier this month, which lifted quota restrictions on exports of diamonds and platinum group metals (PGM) from Russia.

Putin�s announcement comes close on the heels of an Indian government initiative to secure sources of raw materials to bolster India�s position as a major gem and jewellery hub in the near future. According to Jairam Ramesh, the Indian minister of state for commerce, the government is close to finalising deals with a number of countries apart from Russia, including Canada, Australia, South Africa, Namibia, Lesotho, Botswana, Ghana, Angola, Azerbaijan, Armenia, Uzbekistan and Venezuela.

India and Russia are looking to expand total bilateral to $10 billion by 2010, from the estimated $3.8 billion at present. However, in order to achieve the target, bilateral trade would need to grow at a rate of 30 per cent, as against the current 20 per cent, Putin said.