Indian, Russian firms halt diamond trade : The Tribune India

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Indian, Russian firms halt diamond trade

Step taken to avoid West scrutiny into source of jewels

Indian, Russian firms halt diamond trade

Photo for representational purpose only.



Tribune News Service

Sandeep Dikshit

New Delhi, September 24

Russian and Indian diamond companies have suspended transactions in diamonds for the next two months in order to avoid West scrutiny into the source of the stones, which are cut, polished and classified in Surat, the world’s Mecca of finished diamonds.

Officially, the two sides said they reached an amicable decision in this regard after the Indian Gems and Jewellery Export Promotion Council (GJEPC) wrote a letter to the Russian diamond producer, Alrosa, stating that there was “a diminishing demand for diamonds in international markets, leading to disruptions in factory operations and a reduction in resource allocation’’.

“Alrosa has called upon all industry partners, including diamond mining companies, cutting facilities and jewellery retailers, to adopt a similar responsible stance towards rough diamond purchase and sale. This collective effort aims to enhance confidence within the industry and strengthen relationships among all stakeholders,’’ said a GJEPC statement.

The ban on Alrosa’s sales and purchase of diamonds will be till October. The companies under this group are the world’s biggest miner of diamonds by volume. They source diamonds from the Arctic and Siberian regions of Russia, and Africa.

However, the sale has come under increasing scrutiny from G7 countries as they try to choke all sources of external income to Russia. The warning bells for Indian companies had started tolling after Ukraine included Indian diamond company Shree Ramkrishna Exports in the list of “international sponsors of war”. Indian companies, predominantly based in Surat, cut and polish almost 95% of the world’s diamonds.

The G7 countries are now planning certificates in order to allow the sale of finished diamonds within their jurisdictions. There has been communication from European companies to Surat diamond manufacturing companies that they want to set up a tracing system to block imports of diamonds mined in Russia.

G7 countries plan certificates

  • G7 plans certificates in order to allow sale of finished diamonds
  • This will allow segregation of Russian diamonds bought by Surat-based firms
  • G7 is trying to choke all sources of external income to Russia

#Russia


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