Mar 7, 2022
Alrosa promises Indian diamond industry smooth supplies: GJEPC
Mar 7, 2022
Partially Russian state-owned diamond mining business Alrosa has assured the Indian gems and jewellery industry that it will continue to fulfil orders and obligations amid increasing global sanctions on the Russian economy.
Going into the weekend, the Gem and Jewellery Export Promotion Council remained optimistic that the new wave of sanctions imposed on Russia by the US in light of Russia’s invasion of Ukraine will not have a disastrous effect on India’s diamond industry, despite the country relying on a partially Russian state-owned business. Diamond mining business Alrosa has assured its international trade partners that it will continue its smooth supply of rough diamonds.
“GJEPC has received a letter from Alrosa dated February 28 stating that it is ready to address the concerns related to day-to-day operations due to the US restrictions imposed on Alrosa last week,” said GJEPC chairman Colin Shah, the Press Trust of India reported.
However, despite Alrosa’s assurances, further sanctions could still be imposed should the conflict drag on. Moreover, Indian diamond businesses could experience difficulties paying for rough diamonds sourced from Alrosa because Russia has been banned from the SWIFT financial payments network. Delayed payments could push back rough diamond supply by two to three weeks, according to the GJEPC.
India directly imports approximately 10% of Alrosa's total rough diamond output, according to Shah, making the country an important market for the business. Most of Alrosa’s diamonds do eventually end up in India for cutting and polishing after passing through trading centres in other countries with the majority processed in Surat, according to the GJEPC.
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