No Russian rocks as US companies want cast in stone guarantee

Jewellery retailers in the US, wary of unwittingly stocking diamonds sourced from Ukraine’s aggressor Russia, have asked the diamond cutting and polishing units in Surat and Mumbai to mention the place of origin of the rough stones in their invoice.

The diamond cutting and polishing hub of Surat, in Gujarat, is the world’s largest centre for processing diamonds. It sources rough diamonds from Russia and South Africa. The US is a major buyer of diamonds processed in India, accounting for nearly 50% of the country’s export of diamonds and diamond jewellery.

The US retailers have also sought a declaration from the Indian diamond processing units that they will not use rough stones sourced from Russia.

Their demand could hurt India’s gems and jewellery exports and complicate matters for the country’s diamond industry which was already feeling the heat from the sanctions imposed on Russia for its invasion of Ukraine.

“A number of units have received mails from the US buyers. They are worried over the matter,” Dinesh Navadiya, regional chairman, Gem & Jewellery Export Promotion Council (GJEPC), Gujarat, told ET.

Some top jewellery brands, including Signet and Tiffany and Co, have banned the use of Russian diamonds in their products. “Other retailers are following suit,” said a diamond exporter.

“We are hoping the situation will improve within 2-3 months,” said Colin Shah, chairman, GJEPC.

Courtesy: Economic Times