Sparkling Far East of Russia - Indian KGK to invest $50 million into a diamond-cutting factory

The KGK Group of companies, a global leader in gems and jewellery, aims to employ up to 500 people at their new facility near Vladivostok. 

The company has already found a location in the city, which it aims to use before a new factory is complete. 

The Indian investors were granted a certificate of residence for the newly-created Free Port of Vladivostok, which will give them tax and customs preferences, and lower costs for ships in the port. 

The first work will begin in July this year with the factory completion slated for the end of 2019. 

KGK also plans to open a training centre for staff. 

The first work will begin in July this year with the factory completion slated for the end of 2019. Pictures: KGK Group, Alrosa, Kristall

Vladivostok, also dubbed the Russian San Fransisco, was granted free port status in July 2015. 

In September 2016 Alrosa opened its Eurasian Diamond Centre, a one-stop facility with traders, diamond and jewellery manufacturers, gemological laboratories, banks, insurance companies, specialised transport companies, customs checkpoint and state control gathered under one roof. 

The KGK group has branches in Moscow and the diamond region of Yakutia, and sees its new facility in Vladivostok as a gateway to the markets of Asia-Pacific region. 

With China's capital Beijing being just two hours flight away, and South Korea close by, the Indian investors envision the Russian Far East as a prime location. 

The company plans to cut up to 9,000 carat a month.