DIAMOND CUTTING & POLISHING CENTERS IN THE WORLD — RUSSIA

Russia has a history in diamond manufacturing dating back to 1961. Rough diamond fields were discovered in Northern Russia in 1955, and the state-owned Kristall Production Corporation was established soon after. Kristall, which continues to operate today, initially cut and polish locally-mined Russian diamonds for sale within the country. They began selling to the international community in 1982.

The industry’s cost competitiveness has benefited from the recent devaluation of the Russian ruble, which began in early 2014 and continues today. But this has made it significantly more expensive to buy diamonds in Russia with local currency. This, coupled with high lending rates and double- digit inflation, has seen the already-small Russian diamond consumption market grind to a standstill.