Alrosa, based in the Far Eastern republic of Sakha, controls all of Russia's rough diamond production and is the world's second-largest diamond producer after South Africa's De Beers.
"We will have to borrow about $600 million," said Shtyrov.
"This year, the company is preparing for the [Eurobond] issue, and it will most likely be in the beginning of next year," he said at a Russia investment conference in London.
The company said the first offering would be a $300 million offering up to five years and priced at 75 basis points over Russian debt.
It could be either in euros or dollars.
It expects that net sales will rise from $1.55 billion in 2000 to $1.7 billion in 2001 and $2.05 billion in 2005 aided by an increase in diamond sales, steadily rising prices and an increase in margins.
Shtyrov said talks were still proceeding with De Beers about how much of Alrosa's diamond output was to be sold via the South African company, but noted that Alrosa would seek to increase the amount of diamonds it sells overseas on an independent basis.
Shtyrov said the amount of Alrosa diamonds to be sold by De Beers was still under review by a government committee, but it would not be more than $550 million annually.
"Based on the agreement with De Beers and with other companies, the company [Alrosa] has to create its own international sales structure," Shtyrov said.
Alrosa's investment plans will enable it to increase sales of more valuable cut diamonds to $200 million by 2005.
Alrosa will have reductions from plans to transfer its cradle-to-grave social responsibilities to the Sakha government.
Alrosa's recent expansion into Africa with the purchase of a stake in a diamond-mining venture called Catoca has brought it into the controversial issue of conflict diamonds.
With plans to expand investment there, Shytrov said Alrosa had been involved in talks on halting the spread of conflict diamonds ?€” stones that are used to fund wars, mainly in Africa.
He estimated that 4 percent of the world supply was conflict diamonds.
"Angola is one of the areas of the world where conflict diamonds have come from," Shtyrov said.
He said all of Alrosa's Angolan diamonds were sold with government authentication, and the certification scheme would be extended worldwide.
"These certificates will be issued everywhere, even in Russia," he said.
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