Russia’s plan to develop domestic diamond cutting and polishing clusters is unlikely to dent Surat’s position as a global processing centre significantly, according to industry stakeholders quoted by the Times of India.

Russian President Vladimir Putin recently ordered the establishment of diamond cutting clusters in the Republic of Sakha (Yakutia) and Smolensk Region. The initiative is intended to develop Russia’s domestic cutting industry and create a framework for direct supply of rough and partially polished diamonds to participating companies.

Industry representatives in Surat said the Russian clusters could face challenges related to operating costs, availability of skilled labour and infrastructure. Surat has an established ecosystem of diamond manufacturers, skilled artisans and supporting businesses, giving the city a cost and operational advantage.

Surat currently processes about 90% of the world’s diamonds, supported by a large network of cutting and polishing units. The region also has an established supply chain covering manufacturing, trading and related services.

The development comes as Russia seeks to strengthen its domestic diamond value chain. Under the new framework, Russian mining companies are required to offer rough and partially polished natural diamonds to eligible cluster participants before placing them into circulation.

For Surat manufacturers, the immediate impact is expected to remain limited, although the emergence of another producing centre could influence the global distribution of rough supply and diamond manufacturing over the longer term.