Diamonds from Russia continue to enter EU and U.S. markets despite G7 and EU sanctions against Alrosa, Russia’s largest producer and one of the global industry leaders. According to an investigation by OCCRP and European media, Armenia has become a key transit hub for bypassing restrictions, supplying precious stones worth hundreds of millions of dollars. European authorities admit that during the cutting stage, the stones often lose information about their origin, reports The Moscow Times.
The main tool of the scheme is the First Diamond Company (FDC), established in Russia in May 2022. Formally, it is independent from Alrosa, but its owners and top managers are connected to the state-owned company: the owner is Regina Sobol, a former employee of Alrosa’s sales department, and the first CEO was Evgeny Tsybukov, who previously worked at Alrosa Diamonds in Moscow. Since the end of 2022, FDC has been actively exporting diamonds to Armenia. According to OCCRP, almost half of all diamonds imported into this country are of Russian origin. Between January 2023 and March 2024 alone, FDC exported diamonds worth over $290 million.
Through Armenia, Russia has maintained supplies via intermediaries to one of the industry’s biggest global players — the Indian jewelry conglomerate KGK Group. Before 2022, KGK openly worked with Alrosa, but after the start of the war, it removed mentions of its projects with Russia. FDC’s key partner became Imperial Diamond, whose main founders are Glowmore DMCC from the UAE and businessman Ramani Vitalbhai Vallabhbhai, an Indian-origin Russian passport holder linked to KGK Group. The company’s director is Pavel Vinikhin, who previously managed Alrosa’s assets.
According to 2024 documents, Imperial Diamond purchased stones from FDC and Armenian companies ADM Diamonds and Fancy Jewelry. After processing, the stones were often returned to the same companies. During the cutting stage, the diamonds lost their “Russian trace” and were then exported to the EU and U.S.
Significant volumes of Russian diamonds also flow through Indian companies Gloria Gems Trading and Mohit Diamonds. The former is linked to KGK Group and jewelry houses in Belgium and the UAE, while the latter — a former direct partner of Alrosa — supplies 20% of its products to the U.S. and 8% to Belgium. FDC’s total turnover with its three largest intermediaries — Imperial Diamond, Gloria Gems Trading, and Mohit Diamonds — exceeds 270 billion rubles.
In addition to FDC, Alrosa has created several other companies to bypass sanctions. Among them are Trading Horizons (registered in February 2024, with former Alrosa employees as directors) and Diamond Trading House (DTH), established in November 2022 by Elena Smirnova, an employee of Alrosa’s unified sales company. Formally independent, these firms transfer revenue to Alrosa under agency agreements. Among DTH’s largest clients is Enso Global Trading, which has signed over 200 contracts worth more than 30 billion rubles. Through these structures, Russian diamonds continue to reach Europe and the U.S.
