Russia Delays 8% Rough Diamond Export Duty Until March 2027

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The Russian government has postponed the introduction of an 8% export duty on rough diamonds, moving the implementation date from September 1, 2026, to March 1, 2027. The decision follows a decree signed by Russian Prime Minister Mikhail Mishustin on August 11.

The duty will apply to uncut diamonds weighing between 0.45 and 10.8 carats, as well as special-sized rough diamonds above 10.8 carats.

The proposed measure is intended to support Russia's domestic diamond-cutting industry, which has faced declining competitiveness since rough diamond export duties were removed in 2016 under an agreement with the World Trade Organization. Prior to their removal, Russia imposed a 6.5% duty.

The postponement comes at a challenging time for Alrosa, Russia's state-controlled diamond producer, which exports around 90% of its production. Since facing US sanctions in 2022, the company has had to overhaul its distribution networks, logistics and payment mechanisms. The G7's embargo on Russian rough and polished diamonds, introduced in early 2024, added further pressure, forcing Alrosa to redirect its trading flows.

The company is also operating amid a prolonged downturn in the global diamond market, driven by weaker jewellery demand in China and growing competition from lab-grown diamonds. Alrosa CEO Pavel Marinychev has previously expressed optimism that inventories would normalise and market conditions would improve.

However, additional pressure has emerged from US tariffs on Indian goods, affecting the world's largest diamond-cutting and polishing hub and adding another layer of uncertainty to the global diamond supply chain.

Source: Interfax