As western countries led by the United States are gradually increasing sanctions on Russian imports and exports, more and more industries are affected by it. Among them, the sanctions imposed by the United States on Russian diamond giant erosa are causing chaos to the global diamond industry. Manufacturers, processors and traders have to pay for this series of sanctions in order to obtain diamonds.
Surat, located in Gujarat State in western India, is the largest diamond polishing center in the world. According to the data released by the Indian gem and jewelry export promotion committee (GJEPC), nearly 90% of the diamonds in the world are processed here, and 28% of the raw materials come from Russia. According to the data in April, the import volume of Indian rough diamonds was only US $1.31 billion, a month on month decrease of 35.68% and a year-on-year decrease of 22.84%.
The sanctions have hit the processing industry that relies on imported rough drills. The working hours and income of workers and traders in this industry are becoming less and less. According to local media reports, the working hours of large processing plants in Surat have been reduced to 3-4 days a week, while small factories are closed.
There are 100 diamonds from India and India. Due to the shortage of supply, people here now shorten their working hours from 8 hours to 6 hours.
Earlier this year, the United States included the Russian state-owned enterprise elosa on the sanctions list of the foreign assets control office of the Ministry of finance, which is one of the world's largest diamond giants, supplying about one-third of the world's diamonds. According to the requirements of the agency, all customers and other counterparties must stop trading with elosa as soon as possible. According to industry data, elosa's diamond mining capacity accounts for 90% of Russia's total diamond mining. Its sanctions represent that the global raw stone reserves may be reduced by 30%. The tight global diamond supply may lead to a further surge in the price of natural diamonds.
