Sanctions "May Not Really Impact" Diamond Supply, says Lussier

By John Jeffay / March 20, 2022 / www.idexonline.com / Article Link

(IDEX Online) - Sanctions may have a limited impact on the overall supply and demand of diamonds, says Stephen Lussier, chairman of the Natural Diamond Council (NDC), and outgoing executive vice president for brands and consumer markets at De Beers Group."There are a lot of markets that aren't going to follow the EU and US lead [on sanctions] and some consumers aren't going to be influenced by them," he told the fashion Bible WWD in a wide-ranging interview to mark his departure from De Beers after a 37-year career."So it may be that the overall supply and demand is not really impacted."He noted that current sanctions largely affect Alrosa's ability to raise funding, which may affect the company in the mid to long-term, impacting investment into new projects and source mining technology.Alrosa suspended its membership of the NDC earlier this month, and relinquished its position as vice chair of the Responsible Jewellery Council (RJC), following Russia's invasion of Ukraine.It said it hoped the industry would stand strong during "this tough time" and that the situation would soon stabilize."The current sanctions don't prohibit Alrosa from selling diamonds into the world, although it's not so clear how they'll get paid. In the medium run, it'll depend on how consumers act," said Mr Lussier.

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