Non-Russian Diamonds "to be Traded at a Premium"
April 18, 22
(IDEX Online) - African diamond miners are expected to reap the benefits of sanctions against Russia over its invasion of Ukraine.
The US has outlawed trade with Alrosa and blocked the company from its banking system, though it has not imposed restrictions on Russian diamonds that are cut and polished elsewhere.
"Many diamond industry participants from cutters to polishers, traders, wholesalers will begin to segregate their supply-chains via 'non-Russian' and 'Russian' goods, so they can effectively cater to their respective clients," diamond analyst Paul Zimnisky told African Business.
He suggests that non-Russian diamonds - about 70 per cent of the world's supply - could trade at a premium in the short-to-medium term.
The four main diamond trading centers - Antwerp, Dubai, Tel-Aviv and Mumbai - are still trading with Russia.