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Wealthy Russians Surge in Investment-Grade Diamond Purchases Amid Market Uncertainty

Demand for polished diamonds up by 60% as individuals diversify portfolios with gemstones following VAT abolition and growing financial volatility.

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Wealthy Russians are increasingly turning to investment-grade diamonds, with purchases of polished stones rising by 60% last year, according to VTB, the country’s second-largest bank. This surge in demand is attributed to the government’s decision to abolish VAT on diamond purchases, which has made gemstones a more attractive investment option.

Oksana Semenenko, vice president at VTB and head of its private banking division, explained that the rarity and uniqueness of diamonds make them especially appealing during times of rising financial market instability and tighter investment restrictions. Many affluent clients are now incorporating alternative investments, including diamonds, into their portfolios, typically allocating 5-10% of their assets to these tangible assets for diversification.

This shift comes amid increasing sanctions from the G7 and restrictions on Russian currency, which have impacted Russian diamond exports. In response, Alrosa, the state-run diamond mining giant, is turning to alternative markets to sell its goods. The company’s Diamond Exclusive program focuses on polishing its largest and highest-quality diamonds, particularly stones of 3 carats or more, to be sold directly to investors through partnerships with VTB and other financial institutions.

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DiamondBuzz

Antwerp Records First Global Tender Of Fully Traceable Artisanal Diamonds From DRC

OrigemA Initiative Opens International Market Access For Small-Scale Miners, Promoting Transparency, Fair Pricing and Responsible Sourcing Across The DRC’s Artisanal Diamond Sector.

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In a landmark development for the diamond industry, a parcel of fully traceable artisanal rough diamonds from the Democratic Republic of Congo (DRC) has been sold internationally for the first time, highlighting growing efforts to strengthen responsible sourcing and improve market opportunities for artisanal mining communities.

The 103.77-carat parcel, sourced from the Kasai region, was presented through a public tender in Antwerp organised by Bonas-Couzyn under the OrigemA project. The initiative was launched in 2022 through a collaboration between the Antwerp World Diamond Centre (AWDC), the DRC Ministry of Mines, NGO Resolve, and technology partner Everledger, with support from Belgium’s Federal Public Service Foreign Affairs.

The OrigemA programme currently works with six mining cooperatives across the Kasai and Kasai-Central provinces, supporting an ecosystem that provides livelihoods to nearly three million people. The inaugural parcel, valued at approximately US$6,000, originated from the Kamana Ndeke mine and was produced by the COMIDIANZ cooperative.

According to Karen Rentmeesters, CEO of AWDC, the initiative was designed to tackle longstanding barriers faced by artisanal miners in the DRC. She noted that many cooperatives have historically struggled to access international buyers, often preventing them from receiving fair market value for their production.

Belgium’s Foreign Minister Maxime Prévot revealed that the country’s Peacebuilding Fund had invested €200,000 in the project. He described the Antwerp sale as a significant achievement for both the OrigemA programme and the COMIDIANZ cooperative, marking an important step in connecting artisanal producers with global markets.

Beyond market access, the project has also focused on improving mining standards. To date, around 450 miners have received training in safe and sustainable mining practices, while participating sites have benefited from initiatives aimed at enhancing productivity and operational efficiency.

With the DRC estimated to account for nearly 70% of global artisanal diamond production, programmes such as OrigemA are expected to play a vital role in strengthening transparency, supporting local communities, and creating a more inclusive and responsible diamond supply chain.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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