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Context: The United States is imposing blocking sanctions on two Russian state-owned enterprises.
- Sanctions on Alrosa of Russia, major supplier of Russian rough diamonds to India were being evaluated.
- Alrosa has been recognised as a state-owned enterprise (SOE) of Russia for imposing sanctions.
- Alrosa is “world’s largest diamond mining company”, which supplies “90%” of Russia’s rough diamonds.
Diamond trade between India and Russia
- Diamond has been a major component of India-Russia trade in recent years and the sector also received attention at the top political level.
- Alrosa’s supplies to India had paused briefly earlier this year but resumed last month as the Indian gems and jewellery sector started making payments through German banks.
- Diamond trade between India and Russia found a renewed impetus in 2015, when a special customs zone was created in the Bharat Diamond Bourse in Mumbai to handle rough diamonds from Russia.
- India has displayed keen interest in reaching out to Russia’s Astrakhan province, which is a base for the Indian community that has been active in diamond trade for generations.
- India’s diamond trade is heavily dependent on imported rough diamonds and restrictions on supply of rough diamonds can create serious problems for the gems and jewellery sector.
https://www.thehindu.com/news/national/india-studying-us-sanctions-on-russian-diamond-major-alrosa/article65302792.ece
