De Beers, Russian diamond deal scrapped

De Beers has cancelled its agreement to mine diamonds in the Arkhangelsk region of northwestern Russia.

According to a press release from De Beers's affiliate, Archangel Diamond Corporation (ADC) the company has withdrawn from the project because the Russian government has failed to meet deal implementation deadlines, which expired during the holiday period.

But this is not necessarily the end of Archangel's and De Beers' interest in the deposit, discovered by Archangel and Russian company AGD -- now part of Lukoil -- in 1996.

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