The Republic of Sakha, Yakutia in the far north of Russia, is well known for its extreme frost and natural resources, especially diamonds. Almost half of the world’s proven diamond resources are located on this territory. Yakutsk is the second coldest city that is located in a continuous permafrost area that cannot be reached by road. 99% of all Russian diamonds are mined in Yakutia. There are a number of private companies who work with diamonds, cutting and producing diamond jewellery that has a very high export value. The Diamond industry is a significant part of the local economy.