Sanctioned Russian diamonds flowing to global market – Bloomberg

Russian mining giant Alrosa has quietly revived exports to almost pre-sanctions levels, Bloomberg reported on Tuesday, noting that the company is selling more than $250 million-worth of diamonds per month.

According to the report, citing people familiar with the matter, the Russian firm’s sales are currently only about $50 to $100 million a month below pre-sanctions levels.

The sales have restarted as some Indian banks become more comfortable with how to facilitate transactions in currencies other than US dollars, the sources explained to Bloomberg.

They said that most of the Russian gems are heading to manufacturers in India, “where hundreds of mostly family-owned businesses cut and polish rough stones into the finished products, ready to be used in earrings and engagement rings.” The sources also said Alrosa has been selling diamonds to buyers in India and Europe, mostly in exchange for Indian rupees.

There is no indication that any sales have breached sanctions or laws, the report added, citing the sources as saying there is still widespread unease about the implications of dealing in Russian goods. “The deals are being done quietly,” the sources said, noting that Alrosa has stopped publishing any information on its sales or financial performance.

In April, the US imposed sanctions on Alrosa, among other major state-run Russian firms. Alrosa is the world’s largest producer of rough diamonds, which accounts for about a third of global supply.

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