Leading diamantaires and jewellers in Mumbai warned that India may lose Russian facet of diamond trade

Rule that allows Russian rough diamonds to be processed in Surat before being sent to the US, Europe and other countries – is about to change dramatically

Indian diamond houses that cut and polish nine out of 10 stones mined in the world are caught in the crossfire between Washington and Moscow.

About a week ago, officials of the US State Department and European Union (EU) alerted leading diamantaires and jewellers in Mumbai that plans were under way for harsher sanctions on diamonds originating from Russia, two persons familiar with discussions told ET.

It is feared the rule – that allows Russian rough diamonds to find their way to factories in Surat before being polished and shipped to luxury stores and dealers in New York, Paris and Tokyo – is about to change dramatically.

Today, as long as the roughs from Russia undergo a “substantial transformation” – acquiring the 4Cs or colour, carat, cut and clarity through Indian companies, skilled diamond firms can freely export the cut and polished diamonds to the US and other G7 (Group of Seven) countries.

Courtesy: Economic Times