Diamond traders hope Biden visit will restore sparkle to business with US
US President Joe Biden’s attendance at the G20 Summit has raised hopes of the Indian diamond trade for a better deal as the US has slashed imports of cut and polished diamonds from India by almost 50% amid apprehensions that many of these stones might have indirectly come from Russia. The US has put sanctions on diamonds originating from Russia’s Alrosa mines since the war between Russia and Ukraine broke out last year.
Industry executives said India’s diamond trade is facing problems in in the US, where high-profile luxury jewellery players including Richemont and LVMH Moet Hennessy Louis Vuitton have told suppliers they won’t buy Russian stones, putting the onus on suppliers to disclose the provenance of their gems.
“The fear of sanctions and absence of clarity are impacting the trade,” said a leading diamond exporter, who did not wish to be identified.
The situation is worsening by the day in Surat due to fewer orders from the US, the largest importer of Indian stones.