Russia's Alrosa resumes rough diamond exports to India
Partially Russian state-owned diamond business Alrosa has resumed its rough diamond shipments to India following a pause resulting from the war in Ukraine. Indian importers are also pursuing different payment options.
“Orders for these diamonds were placed in early March, according to the sightholding schedule of Alrosa,” said Gem and Jewellery Export Promotion Council president Colin Shah, about the diamonds arriving in India at present, ET Bureau reported.
“They are coming now. Exporters are routing payment through various banks that deal with euros or other currencies. However, for the diamonds that come up for sale in April, the trade would prefer a rupee-rouble mechanism. The concerned authorities are looking into it and something will be worked out.”
The Indian jewellery industry will be relieved that shipments are coming through. However, the fact that U.S. demand for diamonds has decreased due to uncertainties over the Ukraine war and inflation will cause concern because the U.S. is the biggest buyer of diamonds which are cut and polished in India.
In response to international sanctions on Russia following its invasion of Ukraine and a blocking of SWIFT banking payments in the country, Indian diamond importers had to route payments through German banks which delayed their payments by a week.
Although this provided a temporary solution to the problem of how to pay for diamonds, businesses are looking for a way to pursue a direct rupee-rouble payment mechanism as a long-term solution.
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