Alrosa to launch diamond cutting complex in Smolensk in 2026, mulls opening one in Yakutia

YAKUTSK. April 28 (Interfax) - Alrosa plans to open a diamond cutting cluster in Smolensk Region this year and is considering establishing a similar complex in Yakutia, the Russian diamond miner's CEO, Pavel Marinychev said on Tuesday.

"About the cutting complex in Smolensk, it's true, we want to launch it this year. I want to note that I agreed with [Yakutia leader] Aisen Sergeyevich [Nikolayev] that we'll also try to do a similar cluster in Yakutsk. There are the appropriate prerequisites for this. Furthermore, Yakutia has its own cutting traditions. So, essentially, there will be two such sites," Marinychev said at Alrosa's Khozaktiv-2026 corporate forum.

Alrosa's key cutting division, the Kristall plant, is located in Smolensk.

"The plant has been operating since the Soviet era. The skills and competencies that make it possible to produce that very Russian cut have been preserved. Accordingly, this is a very good foundation and a kind of trampoline for potential future participants in this cluster," the director of Alrosa Diamonds, Bogdan Drachuk said.

The plant has all the necessary process equipment, and Alrosa is prepared to offer marking and sawing services, as well as train workers for participants of the future cluster who do not have the necessary investment, he said.

"The government of Smolensk Region is also prepared to support this initiative. For their part, they promised a number of additional preferences for participants on this cluster. This includes subsidized interest rates on investment in equipment, and certain tax breaks," Drachuk said.

Russia's Federal Property Agency owns 33.02% of Alrosa, Yakutia holds 25% plus one share, districts of Yakutia own 8% and the free float, according to the most recent published data, with retail investors holding 7.58% and foreign legal entities 16.6%. An organization controlled by Alrosa controls 2.06% of shares in the company.