here have been more bureaucratic
here have been more bureaucratic delays because Komdragmet, the state committee for precious metals and stones, was disbanded and its activities split between two ministries. The draft contract agreed to in October has been passed between departments and is still awaiting the vital presidential signature valentine's Day links of london.
Meanwhile, the Central Selling Organization is buying only those Russian diamonds it wants to buy at prices it is prepared to pay. Retail sales of bigger diamonds are doing well at present -- the CSO reported record sales of US$ 4.83 billion for 1996 -- but the market for smaller, cheaper and near-gem rough diamonds is more brittle Links of London Charms.
Traders suggest the new contract would have involved the Central Selling Organization buying about US$ 600 million a year of these smaller stones which Russia might now have difficulty in selling V Charm.
The CSO would also have committed to buying about US$ 500 million a year of bigger rough diamonds but might now be able to pick some of these up at a lower price from western traders who have bought them directly from the Russians U Charm.