A report released by Russia’s Ministry of Finance showed a sharp increase in rough exports in the last two quarters of 2009, including for the first time a shipment to Guinea.

The latest report indicates that a total of 14.708 million carats were exported in 2009, representing $1.229 billion by value. Alrosa also sold 14 million carats of its production to the state stockpile agency, Gokhran, during the year.

The impact of autumn 2008 global financial crisis shows in the near-halt of diamond exports from Russia in the first quarter. By volume, Russia exported 135,597 carats were exported. This compares to the same quarter of 2008, when exports totalled 6,649,000 carats.

During the second quarter of 2009, Russia exported 2,713,000 carats, at a value of almost $30 million. Most of the trade went to Belgium (2,016,000 carats), followed by Israel (253,658 carats), the Finance Ministry said.

In the third quarter, as Alrosa’s marketing found new buyers, growing demand, and rising prices, the exports reached 5,334,000 carats, worth $540.9 million. Fourth quarter exports totalled 6,525,00 carats, at a value of 656 million. Belgium accounted for 73% of the goods, India for 19%.

Interestingly, Russia exported around 250,000 carats of rough diamonds, produced by Alrosa, to the west African republic of Guinea in the last three months of 2009.

According to the information released by the Finance Ministry, Guinea imported about 250,000 carats for a value of $50 million from Russia.

The Finance Ministry in Moscow supervises the diamond sector and the state stockpile. It is also in charge of monitoring compliance with the Kimberley Process. Finance Minister Alexei Kudrin is also chairman of the board of Alrosa.

Asked about the exports to Guinea, the Ministry of Finance said: “The data on diamond sales to Guinea are a commercial secret.” Alrosa said: “We have never exported diamonds to Guinea”.

Ararat Evoyan, head of the Russian Association of Diamond Manufacturers said exports to Guinea were difficult to explain: “It sounds very strange.

Maybe someone in Guinea buys Russian diamonds to mix them with their production and export further. Maybe Guinea is just a mid-way point for exports. I don’t really know, and it’s difficult to say that for sure.”

A Russian diamantaire, speaking on the basis of anonymity, said he suspected a recording or reporting mistake. “I would explain the Guinean exports as a technical Customs mistake or the effect of company registration particulars. A buyer could be registered in Guinea, but actually be located in India, for example. I don’t think the issue of re-export could be involved, because the re-exporter would have to pay the 6.5% tax, and nobody wants that.”

Guinea’s Minister of Mining, Mahmoud Thiam, said: “It’s the first time I hear of this (Russian) diamond business and it does not make much sense to me.

“Diamond exports from Guinea are free and happen on a regular basis. All the exporters need to do is have their stones inspected, valued and certified by the Central Bank, pay their 3% tax, and they are free to sell. The government does not mine or sell itself. So there is very little room for games,” Minister Thiam said.