Russian Alrosa Diamond Deputy Director for sales Yevgeny Tsybukov shows a coloured, fancy brownish greenish yellow oval diamond, 50,21 carats, at Alrosa Diamond Cutting Division in Moscow on July 3, 2019.

Russian diamonds continue to reach markets in Europe and the United States despite sanctions imposed by the G7 and European Union on state-owned miner Alrosa, one of the world’s largest diamond producers, according to The Moscow Times citing an investigation by the Organized Crime and Corruption Reporting Project (OCCRP) and several European media outlets.

The investigation found that Armenia has become a key transit hub for the trade, with precious stones worth hundreds of millions of dollars passing through the country before being re-exported. European officials acknowledge that once diamonds are cut and polished, information about their origin is often lost, complicating sanctions enforcement.

At the center of the trade is the First Diamond Company (FDC), established in Russia in May 2022. While formally independent from Alrosa, its owners and top managers have links to the state company. The firm’s owner, Regina Sobol, previously worked in Alrosa’s sales department, while its first general director, Yevgeny Tsybukov, was formerly employed at Alrosa Diamonds’ Moscow office.

By late 2022, FDC began actively exporting diamonds to Armenia. OCCRP data shows that nearly half of Armenia’s diamond imports originate in Russia, with FDC alone shipping stones worth more than $290 million between January 2023 and March 2024.

Through Armenia, Russia has also maintained supplies to one of the industry’s largest global players—India’s KGK Group. Before 2022, KGK openly cooperated with Alrosa, but references to joint projects disappeared from the company’s website following Russia’s full-scale invasion of Ukraine.

FDC’s key counterpart has been Imperial Diamond, whose shareholders include Dubai-based Glowmore DMCC and businessman Ramani Vitalbhai Vallabhbhai, an Indian-born Russian national with ties to KGK. Imperial Diamond’s director is Pavel Vinikhin, a former Alrosa executive.

According to 2024 documents, Imperial Diamond purchased stones from FDC as well as Armenian firms ADM Diamonds and Fancy Jewelry. The stones were processed, often returned to the same companies, and eventually exported further to Europe and the United States—by then stripped of their Russian origin.

Significant volumes of Russian diamonds are also traded through Indian companies Gloria Gems Trading and Mohit Diamonds. Gloria Gems is linked to KGK and to jewelry houses in Belgium and the UAE, while Mohit Diamonds—once a direct Alrosa partner—ships about 20% of its products to the US and 8% to Belgium. The combined turnover of FDC with its three largest intermediaries—Imperial Diamond, Gloria Gems Trading, and Mohit Diamonds—exceeds $3 billion.

In addition to FDC, Alrosa has created several other companies to continue exports despite restrictions. These include Trading Horizons, registered in February 2024 and managed by former Alrosa staff, and Diamond Trading House (DTH), founded in November 2022 by an employee of Alrosa’s sales division, Yelena Smirnova. Though formally independent, these firms transfer revenues to Alrosa under agency agreements.

Among DTH’s largest clients is Enso Global Trading, which has signed over 200 contracts worth more than $330 million. Through these structures, diamonds are also finding their way into European and US markets.

Earlier, it was reported that at a meeting with Russian leader Vladimir Putin, Serbian President Aleksandar Vučić complained about the challenges his country has faced since the start of Russia’s full-scale invasion of Ukraine.

Courtesy : United24Media