De Beers, one of the world’s largest diamond mining and mining companies, has raised prices for small diamonds after US sanctions were imposed on Russia’s Alrosa, Bloomberg reported on Tuesday, citing sources. According to their information, De Beers increased the prices by 5-7% during the transactions this week in Botswana. As Alrosa’s ability to bring products to market remains uncertain due to sanctions, there is a shortage in the industry and the cost of minerals is rising. According to some sources, even after the price increase, the demand for the product remains high.
On April 8, the US Treasury Department imposed sanctions on the Alrosa group and set a deadline for the Americans to complete transactions with it by May 7, and with its Alrosa USA division – by June 7.
According to The Economic Times, the restrictions have led to a reduction in the activity of diamond cutting and polishing companies in the Indian cities of Surat, Saurashtra and Bhavnagar (Gujarat) due to disruptions in the supply of raw materials from Russia.
Alrosa is one of the three largest diamond mining companies in the world. Its share in world production volume is 25%. Another 6% is represented by the Angolan company Catoca, in which Alrosa’s share is 41%. In Russia, the company operates in the Sakha Republic (Yakutia) and the Arkhangelsk region.
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