Russian Sanctions "Will Prompt Shortages and Price Collapse"
November 20, 23
(IDEX Online) - Sanctions on Russian diamonds will lead to a supply shortage, and a price collapse, according to the country's deputy finance minister Alexei Moiseev.
That in turn will accelerate the rise of lab growns, he said.
The G7 nations, representing 70 per cent of world diamond sales, are poised to implement a boycott on Russian diamonds, which still account for around $4bn of rough sales annually.
"The artificial limitation of the supply of diamonds on world markets on the scale of Russian production cannot be compensated from other sources due to their absence," Moiseev said, as reported by Tass, the state-owned news agency.
"As a result, a possible short-term rush demand for diamonds from the remaining producers will be replaced by a sharp decrease in supply and a collapse in the cost of diamonds, accelerated replacement of natural stones with more affordable synthetics, which, by the way, can be produced in unlimited quantities.
"This will clearly provoke a policy of price competition for survival and, as a result, a frankly vulnerable position for all participants in the natural stones market.
He said limited supplies could rapidly threaten future of mining, cutting and jewelry production businesses.
The US currently sanctions Russian diamonds but does not cover the vast majority of stones that are polished in India or elsewhere.
Pic shows Russia's deputy finance minister Alexei Moiseev.