The fossilized tree resin Amber has been renowned for its color and natural beauty for centuries. But it's very scarce. In fact, nearly all of the world's known deposits are located in one location -- the detached Russian region of Kaliningrad. And most of what's produced there end up thousands of miles away in China. CGTN's Aljosa Milenkovic visited the world's only legal amber mine to see what makes it all so special.

It took just around one hour driving over the brand new highways and through the breathtaking forests of the Kaliningrad region to reach one of the most important landmarks here. An enormous surface mine, where over four decades amber has been dug out, several hundreds of tons, every year. And most of it is sold to China.

VIKTOR KOSTICHEV DEPUTY CEO, YANTARNY KOMBINAT, ROSTEC "As of today, we've already delivered 400 tons. For this year, we'll deliver another 200 tons. The entire contract is worth over 150 million US dollars."

Amber is tree resin that was fossilized millions of years ago. In nature, it can be found in various shapes, sizes and colors. It is used for making jewelry and also has a role in traditional medicines. Most of the world's amber that hits the market starts its journey in this state-owned factory - Yantarny Kombinat.

ALJOSA MILENKOVIC YANTARNY, KALININGRAD REGION "Every year, dozens, if not hundreds, of tons of amber go through the hands of these workers. Amber stones here are precut, polished and getting ready for sale to jewelers around the world, or to be turned into magnificent pieces of jewelry, right here."

Increased demand and the relative ease of finding amber lured many into illegal mining and smuggling of amber in this region. At one point, it was estimated that annually almost 400 tons of amber were illegally mined and sold on the black market in the Kaliningrad region.

VYACHESLAV DARVIN AMBER BUSINESS OWNER "A few years ago, it was true anarchy in that area and it became massive. Whenever amber finds were close to the surface, up to 7 to 10 meters, people just using shovels dug holes in the ground and mined for amber. It was massive all over the region."

A couple of years ago, the Russian government decided to put an end to those illegal activities. It increased fines 1,000 times, put in stricter controls at the borders, and gave Rostec - a state-owned company -- rights to run the world's only amber factory. And the effects were immediate. According to both of our interlocutors, illegal amber digging has almost completely stopped in this region, helping not just the region's budget but also protecting its nature from the human devastation. But these days there is a new threat facing legal amber producers, and it is coming from Ukraine.

VIKTOR KOSTICHEV DEPUTY CEO, YANTARNY KOMBINAT, ROSTEC "Illegal mining affects prices and not the levels of our production. We'll increase our production and decrease costs, so we'll be competitive enough. But in the last year, illegal amber mining in Ukraine has dramatically reduced world market prices."

And yet, whatever's happening elsewhere in the world of amber, one fact won't change. Kaliningrad was and will always remain the amber capital of the world. Aljosa Milenkovic, CGTN, Yantarny village in the Kaliningrad region.