African Countries Will Suffer From Sanctions on Russia's Diamonds, Credit Rating Agency States
© Sputnik . Alexey Nikolsky
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Earlier, the G7 and EU implemented phased restrictions on Russian diamond imports, expanding from diamonds over 1 carat to those over 0.5 carats made from Russian rough in third countries. Mandatory tracking of Russian diamonds in the EU is delayed until March 2025.
African countries, among others, will suffer from sanctions on Russia's diamonds, a study by the Analytical Credit Rating Agency (ACRA) said.
"Sanctions against the Russian diamond mining industry imply restrictions and financial losses for other countries, including African states, whose budgets largely depend on revenues from diamond sales," the ACRA stated, noting Russia's high integration into the international diamond market, which affects the interests of many countries.
According to the study, in case of imposing sanctions on Russian diamond, African diamond producers will have to certify each stone to confirm its geographical origin. The agency noted that it will lead to higher logistics costs and significant expenses both for the African countries themselves and for the global diamond industry as a whole.
According to the study, a sharp decline in diamond purchases by Indian cutters in 2023-2024 negatively impacted global diamond prices, prompting major producers to cut output. This is expected to create a market shortage by 2025, potentially worsening due to depleted reserves, which will likely drive up prices for natural diamonds.
