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Diamonds from Russia continue to flow onto world markets despite strict restrictions from the G7 and the European Union. An investigation by OCCRP and European publications has shown that Moscow has managed to create a workaround in which Armenia plays a key role. The Moscow Times reports this . Russia’s largest diamond producer and one of the leaders in the global industry, Alrosa, is under Western sanctions. However, as the media has found out, it continues to successfully supply its products to Western markets with the help of Armenia. The country is a gateway for hundreds of millions of dollars of diamonds to markets in the EU and the US. European officials admit that information about the origin of diamonds is often lost at the cutting stage, making it easier for Russia to disguise their source. The central instrument of this scheme was the First Diamond Company, registered in Russia in May 2022, that is, just a couple of months after the full-scale invasion of Putin’s army into Ukraine and the sanctions that followed. On paper, it is not associated with Alrosa, but investigators have established the opposite. The owner of the company is listed as a former employee of the Alrosa sales department, Regina Sobol. The first general director of FDC was Evgeny Tsybukov, who previously worked in the Moscow division of Alrosa Diamonds. Since late 2022, FDC has been actively exporting diamonds to Armenia. According to OCCRP, almost half of all stones imported to this country are of Russian origin. Between January 2023 and March 2024 alone, diamonds worth over $290 million passed through Armenia. Moscow has been able to maintain access to Western markets for one of its key exports by using Yerevan as a transit hub, a practice that undermines the effectiveness of sanctions and demonstrates how difficult it is to cut off the Kremlin’s financial flows in a globalized trading environment.
Recall, recently, The New York Times named the reason why sanctions did not stop Russia from aggression.
İt is noted that over the past 3.5 years, the US has blacklisted more than 6,000 companies and people associated with aggression. But upon closer inspection, the numbers are not so impressive: the bulk are private individuals or shell companies. The real big players are almost untouched: fewer than 30 foreign companies have been sanctioned, and only five of them are in the financial sector. And it is he who plays the key role. Russia conducts trade operations through foreign banks, and it is they who provide it with a currency flow. But Washington is in no hurry to impose sanctions on them, because this could spoil relations with third countries. For example, imposing restrictions on major Chinese banks could hurt American trade. If the U.S. imposes restrictions on Chinese financial giants, American companies risk losing the ability to pay Chinese factories for goods or to receive money for their own exports. That could disrupt global supply chains and raise prices within the U.S., analysts say.
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