OREANDA-NEWS Russian diamond trade has slowed sharply since the end of May as cutters see the demand for polished diamonds from other countries. This was stated by independent diamond industry analyst Paul Zimnisky in an interview for Rough&Polished industry agency.

Zimnisky explained that the situation is partly connected with difficulties in paying for Russian goods in US dollars. Moreover, suppliers are under pressure of the decision of major industry players such as Signet Jewelers, LVMH (Tiffany) and Richemont, who have pledged not to buy newly mined Russian diamonds, the expert believes.

The analyst says that, given the circumstances of ALROSA, it would be advisable to reduce production, and produce below the 34 million carats planned for this year.

ALROSA maintains its initial production forecast for this year of 34-35 million carats, Sergey Ivanov, head of the company, told reporters in mid-June. According to the results of the first half of the year, the plan is being implemented, and in the second half of 2022 no reduction is planned.

According to Ivanov, there is still high interest in the company's diamonds. Even though some clients have left, others are filling their niche all around the world amid the resulting shortage.

Russia supplies about 30% of the world's diamonds. In early March, the United States banned the import of rough and polished diamonds from Russia, and in April ALROSA was included in the SDN List. Indian diamond cutters, key buyers of Russian diamonds, have begun abandoning Russian diamonds due to the uncertainty. According to the Indian Ministry of Industry and Trade, from January to March Russia reduced the supply of diamonds to this country by 45%, to 718,000 carats.