Esame gemmologico di un diamante
Esame gemmologico di un diamante

The Ukrainian crisis raises the price of diamonds




There are more important things than jewelry, when life is at stake. But this does not take away the fact that the operators of the jewelry, and even those who want to buy a precious object, are wondering what the effects of the war in Ukraine will be. One consequence can already be deduced: diamonds will cost more. And gold too. One thing, in fact, is certain: the United States has sanctioned one of the largest extractive companies, the Russian Alrosa. The blockade is part of the halt to a number of Russian companies as a result of the invasion of Ukraine.

Il diamante è stato ricavato da una pietra grezza di 179 carati
Diamante di Alrosa ricavato da una pietra grezza di 179 carati

Alrosa is the world’s largest diamond producer by volume and increased its sales by 49% last year. In 2021, it mined 32.4 million carats, with sales exceeding $ 4 billion. The US government explained that the Russian company is responsible for 90% of the diamond mining capacity, an amount that represents 28% globally. And the Russian government holds a 33% stake in the company. In short, when you buy Alrosa diamonds, at least a third of the profits go straight to the Kremlin, not counting the proceeds from taxes. The sanctions decided, however, do not provide for the freezing of Alrosa’s assets, nor a complete ban on doing business with the company.
Diamante con con taglio fancy
Diamante con con taglio fancy

Furthermore, the penalties do not apply to diamonds purchased by Alrosa before February 24, 2022. But the block will have an effect on the near future: all open deals with terms longer than 14 days should be modified to shorten the terms and / or closed quickly. There is also the problem of the embargo on Russian banks, which makes any transaction with normal financial channels difficult if not impossible.
Esame gemmologico di un diamante
Esame gemmologico di un diamante

JVC also advises any US company currently in business beyond. Among the oligarchs affected by the blockade is the chief executive of Alrosa, Sergey Ivanov Jr., son of Sergey Ivanov Sr., a senior Kremlin official who is on the list of targeted citizens. In fact, he is on the board of Gazprombank, the third Russian financial institution and other sanctioned body.

And what about gold? When the war broke out, the price per ounce jumped above $ 1900. Not surprising, given that gold is considered a safe haven asset. But its value remains linked to the progress of the Ukrainian crisis. Until the conflict is over, with a convincing pacification process, the price of the yellow metal will remain hot until it becomes, perhaps, incandescent.

Lingotti d'oro
Lingotti d’oro







Leave a Reply

Your email address will not be published.

Previous Story

The jewels of the Sag Awards

Next Story

Jane Taylor in tandem

Latest from news