25% of global diamond production faces sanctions risk

The sanctions imposed by the West on Russia almost immediately triggered a reaction from Eroza: the company's headquarters in New York closed, and the company resigned from its position as Vice Chairman of the Responsible Jewelry Council, a non-governmental organization responsible for the jewelry industry. The organization is committed to promoting the sustainable development of the world jewelry industry. At the same time, the geopolitical crisis has penetrated the jewelry industry: firstly, according to the industry's authoritative organization Rapport, sanctions on Russian diamonds may lead to a 25% decrease in world diamond production. It is reported that diamond prices have risen by 25% since September last year. Some analysts believe that if it is related to the fact that diamond reserves are almost exhausted, and combined with the recovery of world demand after the COVID-19 pandemic, this superposition will undoubtedly cause a storm in the jewelry industry. Martin Rappaport, the founder of RapNet, the world's largest online diamond trading network, said at a webinar recently that the relevant impact will largely depend on the duration and severity of the Russia-Ukraine conflict.