Alrosa, which sells about $700 million worth of diamonds to 15 select clients in India every year, decided to open its office at Bharat Diamond Bourse (BDB) following the US sanctions.
Though the diamond industry is unclear on the impact of the US sanctions on Russian diamond supply, industry experts feel that the opening of the office in Mumbai will allow the mining giant to do deals in Indian currency. Supply of roughs from Russia to Dubai and Belgium could be severely impacted if the US imposes economic sanctions on Russia, say exporters.
Currently, the industry buys roughs, produced mostly in Russia, from Dubai and Belgium. Alrosa expects production to total 36.6 million carats for fiscal year 2018, an 8 per cent drop from the 39.6 million it recovered last year.
Alrosa accounts for close to 25 per cent of world rough diamond output. An estimated 14 out of 15 polished diamonds studded in jewellery globally are cut and polished in India.
The US sanctions on Russian military exports have put brakes on a $6 billion deal with India and may derail arms purchases of other US allies around Asia, experts say.
India’s annual rough diamond imports total $17 billion. Around 75 per cent of diamond imports are from mining companies, while the rest is imported from secondary markets in Dubai and Belgium.
Diamond analyst Aniruddha Lidbide told TOI, “Alrosa has taken a smart decision to open an office in Mumbai. This will not only boost direct ties between Russia and Indian diamond manufacturers, but will also allow the diamond giant to sell directly. At present, the special notified zone (SNZ) is still awaiting consignment import and other tax reliefs from the central government. Once it is done, Alrosa will be selling directly to Indian diamond companies.”
by via Surat News, Latest Surat News Headlines & Live Updates - Times of India
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