Botswana, Africa’s biggest diamond producer, believes that a protracted embargo on Russian diamonds will allow synthetic gems to gain market share, according to the country’s mining minister.
In April, the United States, the world’s largest market for natural diamonds, placed sanctions on Russia’s state-controlled Alrosa ALRS.MM, trying to cut off a source of revenue for Moscow following its invasion of Ukraine in February.
Alrosa, the world’s largest producer of rough diamonds, will account for roughly 30% of global output in 2021.
Lefoko Moagi, Botswana’s Minister of Minerals and Energy, said the ban on Russian diamonds may raise prices to the benefit of rival producers, but that the gap would be difficult to fill.
