Russian Sanctions: Rupee Deals Hit by Currency Worries

By John Jeffay / January 22, 2023 / www.idexonline.com / Article Link

(IDEX Online) - Indian diamond traders are too worried about volatile currency exchanges to buy Russian diamond in rupee.The welcomed the announcement last July that nine banks were opening "vostro accounts", allowing them to maintain business ties, despite Western sanctions against Moscow.But imports of rough from Russia have fallen by 40 per cent since April 2022 and not a single diamond trader has used the facility."Nobody is willing to take the exchange risk and volatility," said Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council (GJEPC), according to a Bloomberg news report."The Russians are not comfortable with the rupee invoicing as far as the gems and jewelry sector is concerned." Shah said the GJEPC was exploring all avenues to resume the flow of diamonds to India, including direct imports on a "government-to-government basis".India's diamond exports fell 7.7 per cent to $16.6bn year-on-year in the nine months to end of 2022.

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