ALROSA, at the request of India, will suspend diamond sales for two months – Kommersant

Russian diamond mining company ALROSA, at the request of the Gems and Jewelery Export Promotion Council of India, will temporarily suspend distribution of rough diamonds in September and October due to low demand. About it reported in the Indian regulator.

“This decision was made against the backdrop of concerns about declining demand for diamonds in international markets, which is leading to disruptions in the work of cutting factories,” the regulator said in a statement.

A similar request was made by the Indian regulator at the height of the pandemic in 2020. At that time, diamond sales came to a virtual standstill due to the closure of shopping malls and the cessation of travel. However, the request was made to local companies. They were asked to refrain from purchasing diamonds to reduce pressure on the industry.

The Indian regulator said in a statement that ALROSA, in turn, asked industry partners to adhere to the established restrictions. “These collective efforts are aimed at increasing confidence in the industry and strengthening relations between all stakeholders,” the regulator quotes ALROSA.

In September, the regulator’s head, Vipul Shah, expressed concern for the Indian diamond industry, citing declining demand, the impact on the market for lab-grown diamonds, as well as problems with core reserves and production, the economic slowdown in the US and China, and geopolitical instability. He asked for support for a temporary adjustment in rough diamond supplies.

India is a key consumer of Russian diamonds. India’s annual export volume of Russian diamonds is estimated at $4 billion. Despite US sanctions against ALROSA, Indian cutting companies are not yet prevented from purchasing and processing Russian diamonds. The situation may change if the G7 and EU countries impose an embargo on diamonds from Russia.

According to Le Soir, Belgium is leading the development of a plan to phase out Russian diamonds from the EU and G7 countries. According to the publication, the restrictions may come into force on January 1, 2024.

Anastasia Larina