Russian official: Sanctions may wipe out natural diamond industry

MOSCOW, Nov 14 (PRIME) -- Sanctions on diamonds may lead to an accelerated replacement of natural diamonds with synthetic stones, which carries risks for the producing states, Russia's Deputy Finance Minister Alexei Moiseyev said on Tuesday.

"Artificial restriction of diamond supply on the scale of Russian production cannot be compensated from other sources because of their absence," Moiseyev said.

"As a result, a possible short-term panic demand for the diamonds of the remaining producers will change with a sharp decline of supply and a diamond price dive accelerated by the replacement of natural diamonds with more affordable synthetic gems that may be produced without limits."

The official also said that the participants of the Kimberley Process failed to approve a final communique after their meeting because of disagreement over the position on the Ukrainian events.

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