Russia reduces diamond exports to major markets

Anti-Russian restrictions have exacerbated the shortage of diamonds already observed in the world market.

Russia has reduced exports of diamonds to major markets – India and Europe. This was reported on June 6 by Kommersant.

It was noted that the sanctions imposed on the ALROSA group by Russian companies allow them to supply rough diamonds to India, but there are payment problems.

“The restrictions have exacerbated the existing shortage of diamonds in the world market, so the fall in the incomes of Russian producers has been largely offset by rising prices,” the article said.

Thus, Russian diamond mining companies are losing export volumes, but not losing revenue from the sale of rough diamonds.

“From January to March, Russia delivered 718,000 carats to India against 1.3 million in the same period last year. At the same time, in monetary terms, the value of imports in March rose 27% to $ 78 million, “Kommersant wrote.

Shipments of Russian diamonds to Europe in March also dropped in quantity, but not in value.

According to Eurostat, Russia’s imports to Belgium reached 1.5 million carats, three times less than in March 2021. However, the value of all imports in March was 185 million euros against 162 million euros in last year.

Overall, anti-Russian measures are increasing the deficit in the global diamond market, and Bank of America analysts predict a 15% increase in prices amid strong demand and falling supply.

The publication recalls that ALROSA, which makes up 27% of the world’s and 95% of Russia’s diamond production, is included in the EU, US and UK sanctions lists.

India does not support sanctions against the Russian Federation, but payment difficulties have emerged. According to Bloomberg, Indian traders talked to ALROSA in April about how to buy rough diamonds, including the payment currency: rubles or rupees.

The sanctions affected 87% of companies in Russia

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