Alrosa, which accounts for about a third of the global rough diamond supply, is making a comeback: According to Mining Weekly, the Russian mining giant has “quietly revived exports to near pre-war levels.”
Following Russia’s invasion of Ukraine in late February, Alrosa – along with other Russian companies – was hit by sanctions which have sent it to “months of paralysis.” Now, however, Alrosa is back selling more than $250 million worth of diamonds a month – a figure which is “only about $50 million to $100 million a month below pre-war levels,” according to the report.
The main engine for Alrosa’s increased sales is in India, and Indian demand for Alrosa’s rough diamonds. According to the report, “some Indian banks [have] become more comfortable with how to facilitate transactions in currencies other than US dollars […]”. Manufacturers in India are the main source of demand for Russian diamonds, where “hundreds of mostly family-owned businesses cut and polish rough stones into the finished products, ready to be used in earrings and engagement rings.”
According to the sources quoted in the piece, “Alrosa has been selling diamonds to buyers in India and Europe, mostly in exchange for rupees […].”
While there is no indication that any sales have breached sanctions or laws, these deals are still being done quietly. Meanwhile, Alrosa has “stopped publishing any information on its sales or financial performance.”
While Indian demand drives Alrosa’s sales up, big-name players in the diamond industry are still persisting in excluding Russian produced diamonds, US jewelers Tiffany & Co. and Signet Jewelers included. In addition, the US, along with other countries, have spought “to have the gems labeled as conflict diamonds.”
Read the full article here.
