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.

Australian mining company Newfield Resources is on track to bring in a new partner for its Tongo diamond deposit in Sierra Leone. Newfield has entered into a non-binding term sheet with ACA Resources, another Australian-based miner, to oversee the mine’s operations.

If the deal is finalized before June, ACA will assume control of all mining activities at Tongo, charging Newfield a fee per carat of diamonds produced. Both companies are committed to making the Tongo mine a long-term, sustainable producer of high-quality diamonds in Sierra Leone.

Newfield acquired the Tongo mine in March 2018 for $23.6 million through its purchase of London-based Stellar Diamonds. Prior to Newfield’s acquisition, the mine was owned by Israeli businessman Beny Steinmetz, through Koidu Holdings, where he held a controlling stake.

In May 2022, the first diamond sales from Tongo, totaling 5,200 carats, earned an average price of $262 per carat. Since then, Newfield has invested $80 million into the mine, including the construction of 2 kilometers of underground infrastructure. The mine is expected to have an eight-year life, with peak annual diamond production estimated at 260,000 carats by the fifth year of operations.

India proudly takes centre stage as the role of official partner country at INHORGENTA 2025, marking a pivotal moment in the global gem and jewellery industry. The show, INHORGENTA 2025, was inaugurated at the India Pavilion today by  Shatrughna Sinha, IFS, Consul General of India, Munich;  Kirit Bhansali, Chairman, GJEPC;  Stefan Rummel, CEO of Messe München; and Stefanie Maendlein, Exhibition Director of INHORGENTA.

Curated by GJEPC, the India Pavilion is showcasing a stunning array of diamond jewellery, gold and platinum pieces, fine jewellery, and loose gemstones. The India Experience Lounge at INHORGENTA 2025 offers visitors a multi-sensory journey into India’s rich heritage, blending craftsmanship, culture, and innovation.

Additionally, the Brand India Gallery displays masterpieces from the Artisan Jewellery Design Awards, demonstrating India’s exceptional talent and creative excellence. From the exquisite jewellery and Manchaha Rugs, handwoven by rural artisans, to the flavors of Kashmiri Kahwa and Masala Chai, every element engages the senses. The aroma of sandalwood and the melodic strains of the Sitar create an immersive atmosphere, making the lounge a true celebration of India’s artistry and tradition.

A panel discussion, The Rising Indian Jewellery Influence in the Global Landscape, will explore India’s growing impact on the global market, featuring industry experts Alice Cicolini, a high-end jewellery designer based in the UK, and Radhika Somaia, a brand architect, curator, and jewellery contributor.