Buying raw amber from Sambia will be even more difficult

Amber mining is declining, mining equipment hasn't been replaced for decades, and costs and prices are rising.

The announced privatisation of the State Enterprise “Kaliningrad Amber Combine” in Yantarny, through the acquisition of its debt to suppliers and to the federal and regional tax authorities (Kaliningrad Oblast Administration), which was to be undertaken by the powerful joint-stock company “Almazi Rossii” (Alrosa), did not materialise. The Russian state has cancelled the tax and bank debts of its enterprise, which remains the sole owner of the joint-stock companies: the mining company - Kaliningrad Amber Combine JSC and the processing company “Yuvilerprom JSC”, as well as a trading company with a network of four profitable jewellery shops.

In mid-May 2008, a new director of the company – the owner of the firms – was appointed; he had arrived from Moscow with a plan to further reduce raw material extraction and expand processing at “Juwielirprom SA”, whilst reducing sales of raw material to private Russian firms and existing importers of Russian amber. Shortly before that, in March 2008, domestic selling prices to Russian firms were significantly increased; these firms had previously been clearly favoured in this respect over foreign buyers, including even three foreign companies owned by citizens of the Russian Federation, which had previously received the lion’s share of export licences – 97% of the total (the companies: Wikwol in Poland, Pajurio Gintaras in Lithuania and Taurus in Taiwan).

Currently, the following price list applies to private Russian companies:

Price list for raw material at the Kaliningrad Amber Combine net wholesale prices excluding VAT in domestic market transactions
lp.	Raw material category	Ruble	Euro
1	unique, sorted, grade I, 500-1000 g	29.763	827
2	unique, sorted, grade II, 500-1000 g	24.407	678
3	unique sorted grade III 500-1000 g	21.356	593
4	unique, sorted 300 – 500 g	21.356	593
5	unique, unsorted 300-500 g	19.831	551
6	sorted 300-500 g	15.864	440
7	Jewellery, opaque 200-300 g	19.220	534
8	jewellery, unsorted 200-300 g	16.780	466
9	Jewellery, opaque 100-200 g	16.475	458
10	ubilerski, unsorted 100-200 g	14.247	396
11	Layered, collectible 300-500 g	12.600	350
12	gift 300-500 g	10.434	290
13	layered, collectible 200-300 g	10.068	280
14	gift 200-300g	9.366	260
15	layered, collector's 100-200 g	8.817	245
16	Gift 100-200 g	7.932	220
17	soiled, black 200-300 g	5.766	160
18	soiled, black 100-200 g	5.095	142
19	jewellery, 50-100 g	12.203	339
20	Jewellery, 20-50 g	10.678	297
21	Jewellery, 10-20 g	9.458	290
22	Jewellery, 5-10 g	8.542	237
23	Jewellery, 2.5-5 g	6.102	170
24	Collectors' item 50-100g	5.431	151
25	Collector's 20-50g	4.576	127
26	collectible 10-20 g	3.386	94
27	collectible up to 10g	2.715	75
28	soiled, black 50-100 g	2.380	66
29	soiled, black 20-50 g	2.044	57
30	soiled, black 10-20 g	1.708	47
31	polluted, black up to 10 g	1.251	35
32	contaminated, black up to 5 g	1.098	31
33	gift 50-100 g	4.332	120
34	gift 20-50 g	3.966	110
35	gift 10-20 g	3.600	100
36	gift 5-10 g	3.051	85
37	gift 2.5-5 g	2.349	65
38	unsorted from sieve +16 mm	3.234	98
39	unsorted from sieve +14 mm	1.708	47
40	sieve opening +11.5 mm	1.220	34
41	from sieve -11.5 mm	610	22
42	z sieve +4 mm	186	5
43	from sieve -4 mm	68	2

For the calculation of the net selling price in euros, the average exchange rate in May 2008 was used: 1 euro = 36 roubles
VAT in Russia is 18% of the net price and is charged at the time of purchase.
The price list applies to non-licensed, contractual transactions. It was approved by the Director of KKB SA, Ms. P.W. Korytnikowa on 17 March 2008.

Current domestic prices in Russia for grades of raw material used for jewellery purposes have exceeded the prices set for foreign customers in 2005, as illustrated by the table below (not all grades were present in the 2005 price list):

Raw material in species suitable for jewellery processing comparison of export prices from May 2005 with prices for Russian consumers from March 2008
			2008	2005
lp.	Raw material category	Ruble	Euro	Euro
44	1.unique, sorted 300-500g	21.356	593
45	1. unique, unsorted 300-500g	19.831	551	460
46	Sorted 300-500g	15.864	440
47	Opaque, 200-300 g	19.220	534
48	Jewellery, unsorted, 200-300 g	16.780	466	430
49	Jewellery, opaque 100-200 g	16.475	458
50	1. Jewelled, unassorted 100-200 g	14.247	396	380
51	Jewellery, 50-100 g	12.203	339	265
52	1. Jeweller's, 20-50 g	10.678	297	230
53	10-20g jeweller's	9.458	290
54	Jewellery, 5-10 g	8.542	237	175
55	1. Jeweller's, 2.5-5 g	6.102	170	150
56	unsorted from sieve +16 mm	3.234	98	85
57	1. unsorted from screen +14 mm	1.708	47	40
58	1.z thread +11.5 mm	1.220	34	25
59	1.z sita -11.5 mm	610	22
60	z sieve +4 mm	186	5
61	1.z aperture -4 mm	68	2

When assessing the actual situation, one must take into account the fact that in practice the 2005 price list was not adhered to, and in last year's exports, prices per kilogram of good quality amber with a grain size of 300-500 grams exceeded €1,400.

1. Occasions for jewelery raw materials, sorted at a selling price of 593 euros per 1 kg

2. An example of a “collector's” nugget weighing 20g, with the crackle pattern from resin shrinkage during drying preserved on its surface – price €127 per 1kg

3. Jewellery raw material, “cabbage” variety, easy to clarify – mass 102 g, price per kg = 458 euros

Photography: Gabriela Gierłowska