Following G7 sanctions in 2022, the sanctioned Russian miner Alrosa has significantly expanded its "Diamond Exclusive" program, transforming what was once a niche 2019 initiative into a vital revenue stream by selling high-value, investment-grade gemstones directly to wealthy clients via Russian banks. These stones—typically colorless gems over 2 carats with high clarity or rare fancy colors—carry a minimum price tag of $20,000 and offer buyers a strategic hedge against market volatility, further incentivized by a 20% VAT exemption. By favoring direct sales through partner banks over traditional open tenders, Alrosa capitalizes on the extreme rarity of stones weighing 3 carats or more, which represent a mere 1-2% of global production. As global supply continues to tighten, the company anticipates that these elite assets hold the highest potential for future price appreciation, effectively repositioning rare diamonds as a stable alternative to mainstream financial instruments.
