(MENAFN) Russia significantly increased its diamond exports to India in August, according to statistics from India's Ministry of Commerce and Industry, as reported by a news agency.

The value of Russia's diamond shipments to India jumped to $31.3 million in August, more than twice the $13.4 million registered in August 2024.

Despite this rise, the overall value of Russian diamond deliveries to India for the first eight months of the year declined by almost 40%, totaling $342.1 million.

In August, the largest provider of these precious stones to India was the UAE ($685 million), followed by Hong Kong ($173.1 million) and the US ($140.3 million), based on the same data.

Russia remains the globe’s leading producer of rough diamonds and has traditionally served as a major supplier to India’s vast cutting and polishing sector.

Nonetheless, Western sanctions targeting Russia’s diamond trade and its primary mining firm, Alrosa, have disrupted the Indian market.

Since January 2024, the European Union and G7 nations have restricted "direct imports of non-industrial diamonds which have been mined, processed, or produced in Russia."

This prohibition was subsequently extended to diamonds that were "cut and polished in third countries but originated in Russia."

Furthermore, the Indian diamond sector is contending with additional difficulties due to a 50% tariff imposed by the US on cut and polished diamonds.

This includes a 25% punitive duty linked to India’s purchase of Russian oil, along with a 25% reciprocal tariff on Indian goods following the failure of New Delhi and Washington to finalize a trade agreement in August.

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