Russian diamonds are back on the market with deals being done in Indian rupees instead of US dollars, report says

• After being hit with US sanctions, Alrosa is back selling more than $250 million of diamonds a month, sources told Bloomberg.
• The Russian mining giant is selling diamonds to buyers in India and Europe who are mostly paying with rupees.

After being hit with US sanctions, Russian mining giant Alrosa is back selling more than $250 million per month in diamonds, sources told Bloomberg.

Russia accounted for roughly one-third of rough diamond supply globally, but sanctions following Russia's invasion of Ukraine froze sales.

Now, sales are coming back as banks and traders shift transactions away from US dollars to avoid running afoul of sanctions. Alrosa's diamond sales are now $50 million to $100 million below pre-war levels.

The company has been selling diamonds to buyers in India and Europe who are mostly paying with rupees, according to Bloomberg.

Most of the diamonds are destined for India, where manufacturers distribute the stones to small businesses that cut and polish them while banks feel more comfortable using alternative currencies outside of US dollars.

Russia's renewed diamond sales haven't violated any sanctions, but the deals are still kept under wraps with Alrosa no longing disclosing any financial information as doing business with Russia attracts unwanted attention, Bloomberg said.

The return of Russian supplies has also eased tightness in the secondary market for diamonds, with prices coming down recently.