A sweeping ban on Russian diamonds could send ripple effects through the global jewelry market. This concern comes from a report by Hit the primer.
Analyst Leonid Khazanov, quoted by the publication, suggests that sanctions aimed at cutting Russia out of the diamond supply could destroy the industry at its core. He argues that Russia remains the leading diamond producer, a position that would be hard to replace quickly. In 2022, Russia produced about 43.2 million carats, a figure that exceeded the combined total of all other major diamond-producing nations. Khazanov notes that no other country currently possesses the capacity to ramp up production promptly to fill a gap of this scale.
Imposing sanctions on Russian diamonds could trigger significant job losses across the supply chain, affecting cutters, jewelers, toolmakers, and allied workers worldwide. Additionally, price pressures could push diamond costs higher, with estimates ranging from 10 to 20 percent depending on market dynamics and consumer demand.
There were reports in mid-September about the European Union outlining new steps in sanctions related to Russian diamond mining companies. The proposed rules would permit stones with non-Russian markings to circulate within the EU, while a ban on rough diamonds was slated to take effect from January 1, 2024. These developments have been part of broader debates about how to constrain Russia’s mineral exports without disrupting legitimate trade chains too severely. (Source: Hit the primer)
Earlier coverage clarified details of the 12th package of EU sanctions, contributing to ongoing discussions about how the European market might adapt to changing regulatory pressures and evolving supply routes. The situation remains fluid as policy officials weigh economic impact against strategic objectives, with ripple effects felt across mining regions, cut-and-polish businesses, and retail demand in both North America and Europe. (Source: Hit the primer)