DiamondBuzz
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.
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.
DiamondBuzz
Alrosa Launches Its First Long-Term Natural Diamond Promotion Programme Extending Through 2030
The Programme Brings Together Generic Marketing, Consumer Awareness Initiatives, Retail Support and Policy Advocacy To Reinforce The Value Proposition Of Natural Diamonds
Alrosa has launched its first long-term Natural Diamond Promotion Programme extending through 2030, marking a strategic effort to strengthen consumer demand for natural diamonds across major global jewellery markets.
The programme and policy advocacy to reinforce the value proposition of natural diamonds. Central to the strategy is the promotion of qualities such as rarity, authenticity, individuality, emotional significance and lasting value.
Designed as an omnichannel initiative, the programme will leverage digital platforms, in-store experiences and targeted consumer engagement campaigns. Alrosa plans to focus particularly on markets within the BRICS and Eurasian Economic Union (EEU) regions, with Millennials and Gen Z consumers identified as key audiences. The strategy also seeks to encourage new purchasing occasions, including self-gifting and milestone celebrations.
A significant pillar of the programme is consumer education aimed at clarifying the distinctions between natural and synthetic diamonds. Planned actions include support for consistent industry terminology, transparent product disclosure and enhanced detection capabilities at the retail level to help consumers make informed purchasing decisions.
Pavel Marinychev, CEO and Chairman of the Management Board of Alrosa, said:
“A natural diamond is a symbol of authenticity and significant lifetime moments. Our goal is to protect the unique properties of natural diamonds, honestly explain the differences between them and alternatives to consumers, help them make informed choices, and ultimately invest in the future and sustainable development of our entire category: from diamond mining to retail.”
The initiative complements recently introduced Russian regulations that require laboratory-grown products to be marketed as “synthetic” and restrict the use of traditional diamond terminology and grading standards for such products.
According to Alrosa, the programme is designed to support stakeholders across the diamond pipeline—from mining and manufacturing to retail—while enhancing consumer confidence and fostering sustainable long-term demand for natural diamond.
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