Some major brands such as Tiffany, Pandora and Chopard have announced to suspend the purchase of raw materials originating from Russia, in protest of the war in Ukraine.
On March 31, a series of world-renowned jewelers, including American brand Tiffany & Co, Swiss watch and jewelry maker Chopard, diamond jewelry retailer Signet, and manufacturer Pandora, the world’s largest jewelry maker, has announced that it will stop buying diamonds from Russia.
Pandora’s representative also said the company would be leaving the RJC Council – an international organization that oversees the activities of jewelers – after 12 years of membership, as the council “does not suspend membership”. of the Russian company and urged other members to suspend business with the country,” the Guardian reported.
“All businesses must act with utmost responsibility in any business interactions or transactions with Russia and Belarus. Pandora cannot be part of a board that does not share our values,” said CEO Alexander Lacik.
Earlier, in mid-March, the Guardian addressed concerns that diamond mining companies, partly owned by the Russian state, were funding the attack on Ukraine. They can avoid sanctions by exporting through India.
Russia produces about 30% of the world’s diamonds, and 98% of them are mined by Alrosa. Moscow government owns a third of Alrosa shares, while the Russian republic of Yakutia, also owns a third of shares of this group.
President Putin once said that Alrosa “brings significant revenue to the federal budget and the regional budget”.
Both the US and UK ban companies from doing business directly with Alrosa. However, this did not stop the flow of Russian diamonds to the West. As the majority of diamonds are exported to India as rough diamonds. Here, they will be cut and polished, then legally imported into the US as an Indian product, not a Russian product.
So the decisions on whether or not to actually suspend the diamond business with Alrosa rest with companies and organizations like the RJC.
But Brooks-Rubin, a strategic adviser to the RJC, said the decision to boycott Russia was complicated, as millions of jobs and livelihoods depend on the flow of diamonds.
“If 30-40% of the supply chain is removed, that will affect prices and every entity in the entire industry,” he said.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.