Russia Plans to Divert Diamonds in Case of Sanctions

Moscow: In the event that the European Union decides to apply sanctions on Russia in general and the Russian diamond industry specifically, over the country’s conflict with neighboring Ukraine, Moscow plans to divert a large chunk of its diamond exports to other countries, Rough and Polished reports. Russian Federation Ministry of Finance Administrative Department Chief Alexander Akhpolov told Kommersant Vlast Magazine that the country would reduce its rough diamond shipments to the Europe and the United States by a third, and make a commensurate increase in rough diamond shipments to India, China and Armenia.

Akhpolov seemed unmoved by the threat of EU sanctions, implying that their effects would be borne by the countries applying them. If sanctions are implemented, European and American diamond companies will still have to purchase rough diamonds, he said, but they will be forced to do so via third parties in other countries that are not affected by the sanctions. Since demand and sales will continue unabated, Akhpolov said, there will be no need for Russia to reduce its rough diamond prices, according to Rough and Polished.