The ongoing Russia-Ukraine war caused significant unrest in the world. This made some of the major nations impose sanctions on Russia. One such move is the ban of Russian diamonds by the US and UK. Though it was aimed to dent Russia, it also affects other countries in some ways including India. This article explains everything about the diamond trade ban in Russia.
When we think of Russia, our minds first go to the nation’s military richness. But, the world’s largest nation is also famous for another valuable item – Diamonds. Russia accounts for 30% of the world’s diamond supply. That is a significant amount as Russia alone contributes nearly one-third of the world’s diamonds.
This monumental diamond production requires some reputed and experienced companies to handle it. This is where the Russian giant Alrosa comes in. This company alone contributes 90% of the above-mentioned 30% world’s diamonds produced in Russia. Because of this, Alrosa earned $4.2 billion last year.
Diamond Trade Ban
Due to the recent Russian aggression on Ukraine, the European Union and the USA decided to ban the diamonds produced in Russia. This is because one of the main diamond-producing companies, Alrosa has ties with the Russian Government. Furthermore, this gemstone producer is owned by Sergey Ivanov, son of Putin’s ally. The company also contributes to the military and nuclear power of Russia. So, it also has blood on its hands as far as the ongoing war is concerned.
Biden says ‘Putin must pay the price’ as he announces move to strip Russia of trade status, ban imports of alcohol, seafood, diamonds https://t.co/pmTfsSCJkl
— The Washington Post (@washingtonpost) March 11, 2022
The company also contributes to the military and nuclear power of Russia. So, it also has blood on its hands as far as the ongoing war is concerned. This is the main reason for the ban on Russian diamonds. As mentioned earlier, this move also affects other countries like Belgium and India. India is responsible for polishing the diamonds from Russia. So, the polishing business will face losses.
As far as Belgium is concerned, its diamond export will be affected as Antwerp, the diamond hub of Belgium gets the gems from Alrosa. So, India, Belgium, and other countries hope that the sanctions will be lifted and modeled in such a way that the move only affects Russia and not other nations.
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