Russia Prime Minister Vladimir Putin, who many consider to be the most powerful man in the country, has pledged to buy some $1 billion worth of diamonds from state-run diamond giant Alrosa under a special state support scheme.

“We understand that the diamond sector, which provides significant revenues to the federal budget and regional budget, is in a difficult situation and needs support due to the global market situation,” Putin was quoted in the news agencies. “To support the diamond sector, the state has agreed to significantly increase state purchases of diamonds.”

Diamond giant Alrosa, which currently produces some 25% of the overall supply of rough diamonds wprldwide and some 97% of Russia’s diamond supply, will need the government's assistance to repay an outstanding debt of $3.6 billion.

The Russian diamond industry will need the government's assistant to deal with this “difficult situation,” stated Putin.