Sanctions make sales more difficult
Russians find record diamonds
September 11, 2023, 1:10 p.m
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The largest diamond in ten years has been found in Russia. However, the sale could become more complicated. Because the discoverer is subject to sanctions.
Gemstone giant Alrosa says it has found the largest rough diamond mined in Russia in the past ten years. The stone weighs 390.7 carats, has an unusual shape and a yellow-brown shimmering ring. It is not yet clear what price can be achieved with the find.
On the one hand, the value of a diamond is determined by four factors: weight, clarity, color and finally the cut. The stones are unique and therefore very difficult to compare. The stone will first be examined by experts, says Alrosa. It was found in the Mayat mine in the Republic of Yakutia in the east of the country. According to the financial news agency Bloomberg, the Russians mine about the same amount of gemstones as the industry leader De Beers from South Africa.
However, the company controlled by the Russian state has a problem: it is subject to sanctions from the USA and Great Britain because of the war of aggression in Ukraine. This could make selling abroad more difficult and drive down the price. Alrosa has previously auctioned its diamonds through international auction houses, including the industry leader Christie’s in London.
G7 wants sanctions
Attempts to stop the sale of Russian gemstones in the EU are met with resistance from importers such as those in Belgium – Antwerp is the center of the European diamond trade. Their argument: Trading would then take place somewhere else and would still be possible.
The EU has not yet imposed sanctions on the Russian diamond sector, but is considering doing so. In May, the G7, a group of large industrial nations, announced at its summit in Tokyo that it would restrict the billion-dollar trade in Russian rough diamonds. The group includes Germany, France, Great Britain, Italy, Japan, Canada and the USA. In addition, the European Union is represented at all meetings. As Bloomberg reports, Alrosa’s sales initially collapsed after the US sanctions were imposed. However, things have now recovered again thanks to the relocation of business to Asia, especially to India.