Indian diamond industry calls on the government to develop a payment system that would facilitate transactions between India and Russia. In particular, industry leaders ask the authorities to allow direct payments to Russia so they can more easily buy goods sanctioned by the G7 countries.
Currently, Indian businesses make payments in rubles or yuan through Dubai and Hong Kong, since payments in US dollars are highly restricted due to Western sanctions, and currency conversions from rupees to rubles are much more difficult. Indian industry representatives want the government to develop an alternative payment method that is more straightforward and cost-effective.
The question of monetary transactions using national payment systems became one of the main topics during negotiations between Russian President Vladimir Putin and Indian Prime Minister Narendra Modi held earlier in July in Moscow.
Russia's share in world supplies of rough diamonds is about $4 billion (30% of all world supplies). In Surat, India's diamond industry centre, where 9 out of every 10 diamonds in the world are cut and polished, Russian diamonds accounted for 35% of the rough supply before sanctions. Indian diamond and jewellery companies plan to continue working with Russian rough diamonds.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
