The recent rebound experienced by the diamond markets may affect the budget of Russia's State Precious Metals and Gemstones Repository, Gokhran.

According to Diamond World, Gokhran was to be allotted some $1.4 billion in funds to purchase precious metals and gemstones, which it intended to spend $150 million on manufactured diamonds and $1 billion on rough diamonds, including $870 million to buy diamonds from Moscow's diamond power house, Alrosa.



The $1.4 billion budget is now likely to be around $700 million, the report added: last year Gokhran had helped Alrosa by buying around $1.1 billion worth of diamonds when markets low in the economic slowdown. This year, Alrosa is optimistic of selling its entire stock in the open market, unless the economy takes a dip again.