World's Largest Diamond Mining Company Sanctioned by US Acceleration of Diamond Substitution

  • Friday, 24 June 2022
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On April 10, it was reported that Alrosa, the world's largest diamond mining company and the Russian state-owned enterprise, had been sanctioned by the Office of Foreign Assets Control (OFAC) of the US Treasury Department. OFAC said all customers and other counterparties must stop trading with the Russian miner as soon as possible.

It is worth mentioning that Alrosa's diamond mining capacity accounts for 90% of Russia's total diamond mining capacity. Its sanctions mean that it may lead to a 30% reduction in global raw stone reserves and a tight global diamond supply, thus soaring prices.

Diamonds are one of Russia's most valuable non-energy exports, with total exports exceeding US $4.5 billion in 2021.

With Russia's Alrosa company sanctioned by the United States, the global raw stone reserves will be reduced by 30%, which will lead to a tight global diamond supply. In this case, cultivated diamonds with the same properties as natural diamonds are expected to replace the supply gap caused by insufficient rough stones. (Source: Sina Finance Headlines)

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