Deputy Head of the Ministry of Finance of the Russian Federation Alexey Moiseev said that the West is attempting to form a cartel in the global diamond market, according to RIA News.
He described a strategy aimed at creating a sustainable sanctions framework, calling it a conditional cartel KP-2. This plan, he claimed, would be driven by the Group of Seven nations and the European Union, seeking to curb the import of Russian rough diamonds. The proposal would involve closing jewelry and diamond product markets for politically objectionable countries and firms by mandating certification of all diamond shipments through recognized authorities such as AWDC or GIA, he explained.
According to Moiseev, artificially constraining diamond supply relative to Russian production would be difficult to offset by other resources in the absence of parallel capacity expansion.
He noted that such supply restrictions could spark short-term demand shifts among remaining producers, leading to a rapid drop in supply and a collapse in diamond prices. The trend could be accelerated by a move toward synthetics, which can be produced in virtually unlimited quantities, potentially substituting natural stones in many markets.
The topic has reverberated beyond Russia, with France recently criticizing the 12th sanctions package against Moscow, which includes measures affecting diamond imports as part of broader economic restrictions.
Historically, Russia has accounted for a significant portion of global diamond production, and observers note that any shift in sanctions or market access can have wide-reaching effects for miners, traders, and consumers in major markets such as the United States and Canada. Industry analysts highlight how certification schemes, cross-border compliance, and traceability requirements interact with supply chains, potentially reshaping financing, logistics, and retail strategies in the diamond sector. As the market adapts, buyers and sellers may look for assurances around origin, authenticity, and ethical sourcing, alongside cost considerations. The discussion underscores how geopolitical moves can influence pricing dynamics, consumer confidence, and the evolution of both natural and synthetic diamond segments in the years ahead, while markets in North America monitor developments for potential shifts in import policies and their impact on domestic jewelry markets. (RIA News)