Russian diamonds continue to reach global markets despite tough restrictions from the G7 and the European Union. An investigation by OCCRP in partnership with European outlets found that Moscow has built a workaround with Armenia at its center, The Moscow Times reports.
Alrosa, Russia’s largest diamond producer and a global industry leader, is under Western sanctions. Yet, according to media reports, it continues to move product into Western markets with Armenia’s help. Shipments worth hundreds of millions of dollars are reaching the EU and the United States through the country. European officials acknowledge that information on a diamond’s origin is often lost during the cutting stage, making it easier for Russia to mask the source.
At the heart of the scheme is First Diamond Company (FDC), registered in Russia in May 2022—just months after Russia’s full-scale invasion of Ukraine and the ensuing sanctions. On paper, it is not tied to Alrosa, but investigators found otherwise. The listed owner is Regina Sobol, a former staffer in Alrosa’s sales department. FDC’s first CEO was Evgeny Tsybukov, who previously worked at Alrosa Diamonds’ Moscow unit.
Since late 2022, FDC has been actively exporting diamonds to Armenia. OCCRP says nearly half of all stones imported into the country are of Russian origin. From January 2023 through March 2024 alone, more than $290 million worth of diamonds passed through Armenia.
By using Yerevan as a transit hub, Moscow has preserved access to Western markets for a key export, undercutting the effectiveness of sanctions and highlighting how hard it is to choke off Kremlin revenue in a globalized trade system.
