In a remarkable display of resilience and strategic partnership, Russia has significantly increased its diamond exports to India by 22% during the first half of 2024. Data released by the Russian Ministry of Trade and Industry reveals that imports of Russian diamonds into India reached an impressive 4,081.82 thousand carats between January and June 2024, up from 3,339.52 thousand carats in the corresponding period last year. Despite the imposition of stringent anti-Russian sanctions by Western nations, Russia has not only sustained its foothold but has also expanded its presence in the Indian diamond market.

This achievement underscores the enduring and robust trade relations between the two countries in the realm of precious stones. An executive from a prominent jewellery firm in Surat, a key hub for diamond cutting and polishing, commented on these developments to our correspondent: “Following the introduction of Western sanctions targeting Russian diamonds, including those from Yakutia, we encountered certain challenges. However, we remained steadfast in our commitment to sourcing stones from Russia. Indian cutting companies actively lobbied the government to protect our interests and ensure the continuity of diamond supplies from Russia.”

While the volume of imports has surged, revenue from Russian diamond supplies to India experienced a decline of 15.22%, decreasing from $613.72 million to $520.33 million over the same period. This reduction is attributed to a general downturn in diamond prices, with Belgium facing the most significant impact—a 32% decline. Nonetheless, Russia continues to play a pivotal role in the Indian diamond market, which is renowned for housing approximately 90% of the world’s diamond cutting and polishing capacity.

“The key takeaway is that Russia remains an indispensable player in the Indian diamond industry, which is a cornerstone of the global rough diamond trade,” the industry source elaborated. In the wake of the special military operation, the Group of Seven (G7) nations implemented restrictions on the import of Russian jewellery diamonds, effective from 1 January 2024. These measures prohibited the acceptance of Russian diamonds weighing one carat or more from 1 March 2024, with plans to further reduce this threshold to 0.5 carats by 1 September 2024.

However, these restrictions have since been partially relaxed. Until 1 September 2025, the United States permits the import of Russian diamonds exceeding one carat, provided they are ncut outside the Russian Federation and were not exported from Russia after 1 March 2024. The European Union has adopted similar provisions.

“The gradual relaxation of these restrictions is a result of India securing concessions and advocating for the protection of its national diamond industry interests. A complete ban on Russian stones would precipitate a severe crisis for our sector,” the industry representative asserted. He further noted that the majority of Russian diamonds processed in India weigh less than 0.5 carats, thereby limiting the applicability of Western sanctions. As the global diamond market navigates complex geopolitical dynamics, India’s unwavering collaboration with Russian suppliers highlights the strategic importance and resilience of their bilateral trade relationship.