Diamond. File photoWASHINGTON, Apr 27Sanctions against the Russian diamond industry will have a negative impact on the global industry, according to American experts interviewed by RIA Novosti. Earlier in early April, the US and the EU included the Russian company Alrosa, which is the world's largest producer of carat diamonds, on the sanctions list. Alrosa accounts for 27% of the world and 95% of Russian diamond production. The company's sales of rough and polished diamonds reached $4.169 billion last year. «If the US government decides to expand sanctions on all diamonds mined in Russia, regardless of where they are processed, then we should expect significant disruptions,» RIA Novosti estimated Analyst Edan Golan noted that the exclusion of Alrosa's products from the world market would cause serious damage to both the company and the entire market, since, in his opinion, its contribution to the world market is irreplaceable. The effect of sanctions, the source of the agency believes, will be less significant if the sanctions only affect the ban on rough stones, since in this case, when they are processed outside of Russia, they will be imported into the United States without violating the sanctions.
Indian buyers are looking for ways to buy diamonds from Alrosa, media reported, he said if sanctions on Alrosa remain until the end of the year, American consumers will experience a rise in the cost of diamond jewelry during pre-New Year shopping. “Rough prices have not risen significantly recently despite sanctions, but if there is a shortage, prices could rise. Ultimately, prices are set based on what consumers are willing to pay, and if they are too high, buyers will turn to other goods,» the expert says. Ben Davis, an analyst at the British investment company Liberum Capital Limited, also speaks about the indispensability of the Russian share in the volume of the world market of fossil diamonds. «Definitely no supplier of fossil diamonds can replace Russia, but the sector of synthetic and recycled diamonds, as well as other precious stones that will benefit from this, is growing rapidly,» the agency's source said. He also warns that «the stagnation of the global economy could lead to lower prices for rough diamonds and, as a result, lower prices for polished diamonds.» In his opinion, «even if Russia completely leaves the market, I don't think you will see a sharp rise in prices.» He expressed confidence that market prices would remain stable, but considered it unlikely that Western sanctions on the Russian diamond industry and, in particular, Alrosa would be lifted soon. » />Alrosa commented on the new US sanctions
