Russian govt delays introduction of export duty on rough diamonds until March 2027

MOSCOW. Aug 12 (Interfax) - The Russian government has delayed the introduction of the 8% export duty on rough diamonds from September 1, 2026 to March 1, 2027, according to a decree signed by Mikhail Mishustin on August 11.

The duty applies to uncut diamonds between 0.45 and 10.8 carats and special-sized diamonds weighing over 10.8 carats.

The logic behind the duty is to support the Russian diamond cutting industry, which lost its competitive advantage and began to lose its expertise after rough diamond duties were lifted in 2016 under an agreement with the WTO. Until 2016, the duty was at 6.5%.

Duties could worsen the situation for Alrosa , which exports approximately 90% of its products. Alrosa was forced to restructure its distribution system, logistics, and payments after being sanctioned by the U.S. in spring 2022. The next challenge was the embargo imposed in early 2024 on Russian rough and polished diamonds imported into G7 countries. Owing to the sanctions, Alrosa is redirecting trade flows, Alrosa CEO Pavel Marinychev said. This is also taking place amid a protracted crisis on the diamond market, caused by a decline in jewelry purchases in China and increased competition between natural and lab-grown diamonds. Although Alrosa representatives have expressed hope that inventory levels will quickly return to normal and the market will recover, the situation was only worsened last year by the imposition of U.S. tariffs on goods from India, the world's largest diamond producer.