Alrosa

Copyright infringement is not intended

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.