Resources: Giant Russian diamond producer to become energy company

Popular daily, Gazeta, today reported that federal authorities want Alrosa, Russia's diamond producing giant, to become a state controlled energy company and diversify into oil, coal and natural gas.

Finance Minister Alexei Kudrin said that, "Diversification does not mean ending diamond production."

Alrosa, is the world's largest diamond producer after De Beers, and in July reported that its diamond sales jumped 29% in 2004 to reach $2.8 billion.

The company has also disclosed that its diamond inventories grew almost three times as fast to reach $331 million.

In May, prosecutors opened a criminal case against unidentified managers at Alrosa, for allegedly embezzling $5.47 million.