The upcoming World Diamond Conference is providing impetus for the Indian gem and jewellery industry to strengthen its ties with Russia, especially as the Russian President Vladimir Putin and Indian Prime Minister Narendra Modi will be addressing the opening day of the conference, reports say.

There are hopes of Russia’s Alrosa to enter into long-term contracts with Indian traders. The deal will allow a direct supply of diamonds to the Indian diamond industry, allowing smaller companies to directly access diamonds from the source, reports add. At present India’s diamond and cutting industry receives diamonds from Antwerp, Dubai, Tel Aviv, London, New York and Hong Kong, through middlemen. The result is an increase in costs fro the manufacturer and end consumer.

Also, with the west threatening sanctions due to incursions in Ukraine, the Indian gateway would prove beneficial for the Russian diamond industry, reports add.