Media reports emanating from Russia say that India’s KGK Group will be investing US$ 50 million to set up a diamond cutting and polishing facility near Vladivostok in Russia. The new company will get a supply of rough diamonds from ALROSA. 

Though KGK’s plans to set up a diamond manufacturing facility in Vladivostok were revealed  earlier, the amount of investment was announced after a meeting took place between Navrattan Kothari, head of the KGK Group, and Russian Deputy Prime Minister and Presidential Envoy to the Russian Far East Yuri Trutnev, during  the latter’s visit to India in March.

Media reports also state that the investors from KGK have been granted a certificate of residence for the newly-created Free Port of Vladivostok by the Russian government. This will entitle them to tax and customs benefits, and lower shipping costs out of the Free Port.

It is reported that the work on building the facility will commence in July 2017 and it is expected to be completed by the end of 2019; and that KGK will also set up a training centre.  Once operational, KGK plans to employ around 500 people and cut and polish about 9,000 carats per month.