World market cannot compensate restricted supply of Russian diamonds Finance Ministry

Alexey Moiseyev noted that such a limitation in supply will also lead to the fact that industry participants - from mining to cutting and jewelry production - risk losing their business in a very short time.
The artificial limitation of the supply of Russian diamonds on the market as part of sanctions cannot be compensated from other sources due to their absence, Russian Deputy Finance Minister Alexey Moiseyev told reporters.
"The artificial limitation of the supply of diamonds on world markets on the scale of Russian production cannot be compensated from other sources due to their absence. As a result, a possible short-term rush demand for diamonds from the remaining producers will be replaced by a sharp decrease in supply and a collapse in the cost of diamonds, accelerated replacement of natural stones with more affordable synthetics, which, by the way, can be produced in unlimited quantities. This will clearly provoke a policy of price competition for survival and, as a result, a frankly vulnerable position for all participants in the natural stones market," he said.
The Deputy Minister noted that such a limitation in supply will also lead to the fact that industry participants - from mining to cutting and jewelry production - risk losing their business in a very short time, and the diamond-mining countries of Africa are an industry vital for the socio-economic development of entire regions and ensures the well-being of local communities in mining regions.
"Russia will make every effort to mitigate the destructive impact of the Wests ill-considered actions. We, as the leading diamond-mining country in the world, are well aware that if the attempts of Western countries to virtually destroy the KP (Kimberley Process - TASS) are successful, then the diamond community will irrevocably lose a unique multilateral regulatory mechanism to which it is accustomed and which it rightly values, trying to develop and improve," Moiseyev concluded.
The Kimberley Process Certification Scheme is the process established in 2003 to prevent "conflict diamonds" from entering the mainstream rough diamond market by UN General Assembly Resolution. Such gems are mined illegally, and the money from the sale is used to finance regional conflicts and international terrorist groups.



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