Russia Now World’s Largest Diamond Producer

Russia is quickly surpassing De Beers as the world’s largest diamond producer.  And yet this feat hasn’t been translating into extensive sales as Russia has been stockpiling the gems during the global economic crisis.  The Alrosa diamond company, which is 90 percent owned by the Russian government, hasn’t sold any of their rough stones since December. And so Russia has, in a way, become the decisive force in the pricing of diamonds on the global scale.  What it decides in terms of production, diamond distribution, and pricing will largely determine the value of diamond rings, earring, tennis bracelets and jewelry for several years.

As Alrosa replaces De Beers as the world’s largest diamond producer, many believe that it is a precarious moment for the Russian company to assume leadership of the diamond industry.

But since de Beers has agreed to an European Union antitrust agreement from stockpiling and has closed mines  as a result of a massive increase in rough stones, Alrosa, and Russia along with it, has emerged as the diamond industry leader.

Alrosa  is also working with the Moscow bank investment titan, Leader, which markets the stockpiled diamonds to foreign investors.  Under the Alrosa plan, foreign investors would buy the stockpiled diamonds, but not release the gems for several yeas.