Editor’s Note
This report details the discovery of a significant 390.7-carat diamond by Russia’s Alrosa. It is important to note that Alrosa is currently under international sanctions.
Russia’s largest diamond producer, Alrosa, has mined a 390.7-carat rough diamond of gem quality in Yakutia. The sanctioned diamond giant Alrosa PJSC announced it found the massive rough diamond.
The state-controlled company reportedly extracted the giant gemstone from the Mayat mine in the Republic of Sakha (Yakutia). Alrosa is under sanctions from the US and UK due to Russia’s invasion of Ukraine; the EU has not yet imposed sanctions on the Russian diamond sector.
The stone has an unusual shape and is surrounded by a yellowish-brown halo, the Russian company said on Sunday. It is the largest diamond of gem quality mined in Russia since 2013. As Bloomberg reports, Alrosa mines the same quantity of gemstones as the industry leader De Beers from London and has focused in recent years on cutting and marketing its largest gems at international auction houses, including Christie’s. However, the US and UK have banned the import of Russian gem-quality diamonds for over a year. These sanctions could hinder a potential sale of the newly mined stone abroad.
Attempts to stop the sale of Russian gemstones in Europe have so far met with resistance from importing countries like Belgium. The argument is that trade would simply shift elsewhere. There is currently speculation that the G7 countries – Canada, France, Germany, Italy, Japan, the UK, and the US – as well as the EU will soon announce further sanctions against Russia, including in the diamond sector.
Alrosa’s revenue initially suffered due to sanctions last year but recovered through a shift in trade to Asia, particularly India. According to reports, Indian authorities recently asked the US to release the frozen $26 million from Indian diamond traders. The money was frozen in an account during a transfer attempt.
However, according to market participants, Alrosa continues to sell diamonds to buyers in Europe despite existing US and UK sanctions, mostly in exchange for rupees.