Diamond Crisis: How War in Ukraine affected the whole city in India

And even the inhabitants of the Indian city of Surat, which is located thousands of kilometers in the western state of Gujarat. Surat is the center of the diamond industry of India, with more than 600,000 people. Masters who work in Suryat are responsible for cutting and grinding 80% of world diamonds, according to statistics of this field. Sustat problems began after a full -scale invasion of the Armed Forces of the Russian Federation into Ukraine.

Then a large -scale wave of Western sanctions against Russia, which also included Russian diamonds, followed, and Surat suddenly encountered a deep financial crisis. Russia's invasion prompted the EU and G7 countries to ban the import of Russian diamonds through third countries, seriously limiting access to the key raw material used by India's diamond industry. When this ban came into force in March 2022, it deprived India almost a third of the income from the sale of diamonds.

Over the past 16 months, at least 63 cuts have been committed in Suryat. Thousands of other experts have lost their job or have faced a sharp reduction in salaries. More than 30% of the raw materials in India were supplied from the Russian company Alros, says Dinesh Navazadia, the chairman of the local branch of the Council for the Promotion of Road Stones and Jewelry (GJEPC).

"From the first shelling during the Russo-Ukrainian War, the situation has just worsened for us," says Jagdish Hunt, President of the Association of Diamond Surata merchants. Since 2023, Indian exports of cut diamonds have fallen by 27. 6%, while the three largest clients - the United States, China and the United Arab Emirates - have significantly reduced their purchases. As a result, companies have accumulated inventories that are about three times higher than those they usually have.

Also on cuttings hit the course of environmental friendliness and fashion on artificial diamonds, as well as "ethical" diamonds, that is, such during the production of which people and the environment do not suffer. Surat since the 17th century has been known in Europe as the "Dawn City" and a large shopping center. Then he was famous for diamonds and fabrics with gold and silver threads.

By the beginning of the eighteenth century, India became the global center of trade in diamonds, which was facilitated by the Portuguese - colonial owners of diamond mines in Brazil and the Indian port city of Goa. The head of the diamond history of Surat began in 1900, when two enterprising brother from the Patidar community began to cut and polish diamonds in the Faulia Vada area in Suryat after returning from South Africa.