Brussels, 24/02/2006 (Agence Europe) - Pledges by De Beers to end purchases of rough diamonds as of 2009 from ALROSA, the world's second largest producer, have been rendered legally binding by a formal decision adopted by the European Commission. The commitments offered by South African diamond giant De Beers relate to its purchases of rough diamonds from ALROSA (a Russian company mainly specialising in the production of rough diamonds, the second biggest diamond producer in the world) and provide for the termination of purchases from ALROSA as of 2009 after a phasing out period from 2006 to 2008. During this period, De Beers' purchases of rough diamonds from ALROSA will decrease from US$ 600m in 2006 to US$ 500m in 2007 and US$ 400m in 2008. This is approximately equivalent to a decrease from €500m in 2006 to €420m in 2007 and €340m in 2008. Following notification of a deal between the two diamond companies in March 2002, the European Commission sent a letter to De Beers over potential abuse of dominant market positions early in 2003. Competition Commissioner Neelie Kroes commented: “For the first time in the history of the diamond market there is an opportunity for genuine competition. De Beers' long-running primacy can now effectively be challenged by its biggest competitor, ALROSA. The Commission's decision frees up a viable alternative source for supply of rough diamonds, which will ultimately benefit consumers.” An independent monitoring Trustee will supervise compliance with these commitments. If De Beers were to break its commitments, the Commission could impose a fine amounting to 10% of De Beers' total worldwide turnover.