Here's Why The US Doesn't Want To Ban Russian Diamond Imports
While Russia could face more severe sanctions as the situation in East Ukraine remains tense, Morgan Stanley analysts rule out diamonds from any future bans on Russian exports.
In a new research note, Morgan Stanley analysts led by Joel Crane discuss various aspects Russian mineral exports. They point out that Russian state-owned diamond mining giant ALROSA "is the largest producer of diamonds globally (followed by De Beers) and the second largest in terms of sales," as can be seen in this chart:
Morgan Stanley
Most of ALROSA's export market is in Belgium, and so the Russian company's interaction with Europe and the West is a big part of its activities:
Morgan Stanley
Given this, Morgan Stanley points out that:
The U.S. consumes more than a third of the world's diamonds, and so a more comprehensive ban on Russian exports that would include diamonds, and thus drive up prices, is not something that is likely to happen:
Morgan Stanley