Commodity Online
SURAT: Like India’s diamond city, Russia is also facing severe problems in its diamond sector with exports plunging by 15 per cent in 2008.

Surat’s diamond industry is also reeling under severe crisis as exports climbed down due to lack of demand in the United States and Europe following the recession.

According to Russian ministry’s report, the country’s rough diamond exports in 2008 totaled 24.472 million carats with a stated value of $1.607 billion.

Compared to 2007, when Russia exported 28.875 million carats with a declared value of $2.023 billion, exports declined 15.25 per cent in volume and 20.56 per cent in value.

The average vale of exports in 2008 declined to $65.67 per carat from $70.04 in 2007.

Russia’s diamond industry also depends heavily on demand from Europe and the United states.

In Surat, several diamond traders had closed shops following a slump in demand and lakhs of people lost jobs because of this.

Russia exported 17.28 million carats worth $1.168 billion to European Union countries, mainly Belgium and the United Kingdom.

The rest was exported to Armenia, Belarus, Israel, India, China, United Arab Emirates, U.S, Switzerland, South Africa and Japan.

Russia imported 254,485 carats of rough diamonds worth $60.862 million in 2008.

Of this, 232,407 carats worth $38.322 million were imported from the EU. Other import sources included Guinea, Israel, Congo, Sierra-Leone, Tanzania and Switzerland.

Recently, India’s Gem & Jewellery Export Promotion Council (GJEPC) had signed an agreement with Russia, China, Iran and other CIS countries for promoting diamond and jewellery products in these regions.

With exports being limited to the US and Europe, India and Russia are trying to make inroads in other potential destinations.

GJEPC has mutually agreed to host buyer-seller meets in Syria, Uzbekistan, Azerbaijan, Poland and Ukraine.

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