Russian Government to implement 8% export duty on rough diamonds as of Sept. 1, 2026

The Russian government has implemented an 8% export duty of the customs value on rough diamonds weighing between 0.45 carats and 10.8 carats, as well as special-size diamonds (over 10.8 carats). The corresponding instruction was signed on June 12 and published on the official portal of legal acts. The duty takes effect on September 1, 2026.

The rationale behind the duty is to support the domestic diamond cutting industry, which lost its competitive advantage and began to lose expertise following the abolition of the diamond duty in 2016 under the WTO agreement. The initiative to develop measures to support the cutting industry came from the governor of the Arkhangelsk Region and was supported by the governor of the Sakha Republic (Yakutia), Deputy Finance Minister Alexei Moiseyev previously said.

The export duty on rough diamonds was 6.5% until 2016. Assuming the duty is set at the same level now, it could reduce Alrosa’s EBITDA by up to 20% for 2026, according to Akhmed Aliyev of T-Investments. Alrosa had to restructure its distribution system, logistics, and payments after being added to the U.S. sanctions list in the spring of 2022. The next challenge was the embargo imposed in early 2024 on Russian rough and polished diamonds imported into G7 countries.