US Sanctions On Russian Diamonds Deal Severe Blow To India's Working Class - Trade Union
Sumaira FH Published May 30, 2022 | 11:00 AM
WASHINGTON (UrduPoint News / Sputnik - 30th May, 2022) Western sanctions on rough diamonds have ended up devastating workers in India's polishing industry, where unemployment, wage reductions, and suicide rates are now on the rise, president of Diamond Workers Union Gujarat, Ramesh Zilariya, told Sputnik.
In early April, the Biden administration imposed sanctions on Russian diamond mining company Alrosa, which is responsible for 90% of Russia's diamond mining capacity and is the source of about a third of all diamonds worldwide. Prior to the designation on Alrosa, President Joe Biden issued an executive order to ban US imports of non-industrial diamonds from Russia.
"Western countries, including the United States, said that you must make sure the diamonds you are polishing are not of Russian origin," Zilariya said. "The outcome... has severely affected India's diamond industry, as part of which the Gujarat diamond industry has been forced to cut production."
Gujarat province is home to the city of Surat, known for being one of the world's largest diamond polishing hubs.
Zilariya said the decline of polished diamond supply in the market caused by the sanctions has forced diamond polishing companies to cut their employees' work hours, adding that many workers have also become unemployed or put on 15-day furloughs.
"The policy of cutting production has had a direct impact on the workers in the diamond industry, due to which inflation is increasing on the one hand and on the other hand the wages of those working in the diamond industry are falling, due to which many workers are committing suicide," Zilariya said.
The Diamond Workers Union in Gujarat recently met the Chief Minister of Gujarat and the Labor Minister to explore options to resolve the crisis and possibly put together an economic aid package to support the industry.
DIAMOND SHORTAGE EXPECTED IN FALL
There is a loophole in the US sanctions that allows rough diamonds from Russia to make their way to the US market if they are polished in a third country. However, several Indian polishers have said clients in the West are refusing to accept Russian-mined diamonds because they consider them conflict diamonds with respect to Moscow's special military operation in Ukraine.
De Beers, the second-largest mining company behind Alrosa, said it will find it very difficult to provide additional supply to the global market.
"At this point, diamond manufacturers everywhere are slowly backing away from Alrosa's diamonds because of consumer pressure and retailers' desire to be able to tell their clients that the diamonds they are offering are not sourced from Russia," veteran diamond industry analyst Edahn Golan told Sputnik. "In addition, banks are refusing to be involved in the trade in Alrosa's goods, even if the transaction takes place in a country not sanctioning Russia. None of the banks is willing to risk their license to operate in the US."
There are currently no shortages in rough diamonds, however, that is expected to change in August when demand will rise and manufacturers will start polishing rough diamonds for the holiday season in November and December, Golan said.
De Beers is working at capacity and no new diamond mines are in sight, Golan added.
Related Topics
Recent Stories
Parineeti Chopra opens up about her decision to marry politician Raghav Chadha
PCB decides to set up training camp for national team ahead of England, Ireland ..
Virat Kohli's sweet birthday wish for Anushka Sharma
Interior Minister commends Pakistan Coast Guards
Pakistan women’s squad announced for England tour
Punjab CM Maryam inaugurates initiative of field hospitals
PM Shehbaz constitutes committee to investigate caretaker govt’s wheat import ..
Women T20I: Pakistan to face West Indies in fourth match tomorrow
Pak-UK 6th Regional Stabilization Conference underway at NDU, Islamabad
World Labor Day being observed today
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 1 May 2024
Today Gold Rate in Pakistan 01 May 2024
More Stories From World
-
UK drugmaker GSK posts mixed first-quarter earnings
3 hours ago -
Three injured in apparent stabbing at UK school: police
4 hours ago -
Istanbul police clash with May Day protesters
4 hours ago -
Red Bull confirm design chief Newey to leave F1 team in 2025
4 hours ago -
Raid at Mexican embassy 'exceptional', top UN court told
4 hours ago -
Raid at Mexican embassy 'exceptional', top UN court told
5 hours ago
-
US novelist Paul Auster dies aged 77
5 hours ago -
Georgia condemned after police crackdown on protesters
5 hours ago -
Madrid stars keen on Kroos stay after Munich masterclass
5 hours ago -
Hollywood stunt performers rev up 'Fall Guy' premiere
5 hours ago -
April temperatures in Bangladesh hottest on record
5 hours ago -
Ambassador Hashmi calls on President, China Arms Control and Disarmament Association
5 hours ago