A report just issued by Smolensk Kristall, the state-owned leader of Russia's diamond cutting and polishing sector, indicates that if the first-quarter sale trend extends for the full year, this will be record year for Kristall.

Sale revenues for the three months to March 31 came to Rb3.5 billion ($123 million). This marks a growth rate of 46%. Bottom line profit was Rb38.8 million ($1.4 million), up 49%.

The share of exports in Kristall's total sale revenue also picked up, compared to last year. This past quarter, exports comprised 97.7% of total production, while domestic diamond sales asmounted to 2.3%. The company also says it invested Rb20.7 million ($730,000) in modernization of production.