Inside the Global Diamond Supply Chain: From Russia to Israel and Beyond

Introduction:

Why the Diamond Value Chain Is Critical for Understanding Diamonds in 2026

Diamonds are special objects. They glitter, they mean something to people, and they do not lose their value. But when you look at a display filled with diamonds in a jewelry store, you probably do not think about how difficult and politically sensitive the process of getting these gems has been.

What makes 2026 particularly critical for diamonds? The global value chain associated with diamonds is currently witnessing some significant changes. These changes are caused by sanctions, geopolitical factors, increased awareness among consumers, and India’s leading role in the production of cut diamonds.

If you are considering buying diamonds that are natural or trying to procure certified diamonds in India, finding out how the diamond chain works cannot be considered an optional task anymore; rather, it is mandatory.

In this blog, we walk you through the complete diamond supply chain process, from the icy mines of Russia to the bustling cities of polishing centers such as Surat, Israel’s trade routes, Belgium’s markets, and finally reaching jewelry retailers around the globe. In addition, we take up the topic of collusion in the diamond market and discuss its implications for the buyers of diamonds.

Part 1: The Birthplace – The Diamond Mining Landscape in 2026

Russia: The Biggest Producer of Diamonds Faces Sanctions and Scrutiny

Russia has long held the title of the biggest producer of diamonds in the world. Through its state-owned mining company, ALROSA, Russia produces roughly between 30 million and 35 million carats of rough diamonds annually, mined mostly in Siberia and the Yakutia regions of Russia.

However, times have changed in 2026. Following the 2022 invasion of Ukraine and subsequent G7 sanctions through 2025, Russian diamonds face strict regulations in Western countries..2026. The European Union, the United States, and others have imposed sanctions or restricted the imports of rough diamonds originating from Russia.

Yet, Russian diamonds do still circulate throughout the world; they merely follow different routes. Much of the Russian rough has now taken alternative routes through non-sanctioned countries, where it is processed and polished before re-entering the market with a new origin label. This practice makes up one of the most contentious aspects of the diamond market today and a collusion-based problem we will address later.

Other Important Mining Countries

While Russia grabs most of the attention, the world’s supply of rough diamonds is surprisingly diverse in 2026:

Botswana maintains its position as a leading producer via the Debswana diamond partnership with De Beers. It has been successful in renegotiating the terms of its diamond agreement, keeping more rough to be refined within the country.
Canadian mines such as Ekati and Diavik continue producing high-quality rough diamonds with ethical premiums.
Angola has stepped up its production, with Lucapa and others increasing their production.
Zimbabwe and the DRC are large producers, though their mining practices are under criticism.

The supply of rough diamonds is not declining in any way, despite all of the disruption.

Part 2: The Middle of the Chain – Cutting, Polishing, and the Ascendancy of India

Unmatched Dominance of India in Diamond Processing

One cannot talk about modern diamond production without mentioning Surat. Located in the western part of India in the state of Gujarat, Surat accounts for about 90 percent of the diamond cutting and polishing done throughout the world. It took almost half a century to make Surat the center of modern diamond processing.

The highly skilled workforces of Surat and other nearby cities as Navsari, Amreli, and Bhavnagar can cut diamonds that no one else could even dare to attempt. India is not falling behind in technology either. In 2026, India made considerable advancements in the development of technologies—from laser cutting to automated diamond grading software.

Certified Diamonds India – An Insight

What is meant by “certified diamonds India” is the polished stones that have received grades from internationally recognized diamond testing labs. These certifications include:

GIA (Gemological Institute of America): the best standard when it comes to diamond grading certificates worldwide
IGI (International Gemological Institute): Based in Antwerp, but having an important lab in Mumbai; widely recognized in India
HRD Antwerp: Well known in Europe
SGL (Solitaire Gemmological Laboratories): Lab based in India; extensively used in the local diamond market.

A certified diamond from India in 2026 would be a stone that received cutting in India and has received proper grades according to the 4Cs of diamond, along with a certificate report number that can be found online using the issuing lab’s database.

In case you are looking to purchase diamonds – especially online and in bulk – never settle for uncertified diamonds.

Israel: The Diamond Intelligence Centre

The Tel Aviv Diamond Exchange, one of the biggest in the world, operates at an intriguing juncture within the diamond value chain. Although Israel itself doesn’t engage in mining diamonds, historically it has been a key player in dealing in big stones, financing diamonds, and gathering intelligence.

Now, in 2026, the situation in Israel has changed. The exchange still deals in large numbers of polished diamonds, and Israelis continue to have excellent contacts in Antwerp, Mumbai, Hong Kong, and New York. One thing that makes Israel unique in today’s geopolitical context is how Israel has maneuvered around the Russian diamond issue, not joining Western sanctions on rough diamonds from Russia.

Israelis are famous for their knowledge of bigger stones, colored diamonds, and high clarity rounds. In fact, if you’re looking for a diamond over 3 carats, there’s a very good chance that somewhere along the way, the stone was handled by an Israeli dealer.

Part 3: Belgium, Dubai, and the Trading Hubs That Drive the Market Antwerp: Continuing as the World’s Premier Diamond City

Although threatened by interruptions and competition, Antwerp continues to be the world’s most significant diamond-trading hub. According to estimates from the Antwerp World Diamond Centre (AWDC), about 86 percent of all the world’s rough diamonds and 50 percent of all polished diamonds pass through Belgium each year.

The key to Antwerp’s success is its blend of financial services, reputable brokers, transparent pricing structures, and access to major markets in Europe. The four markets in Antwerp provide a sort of market integrity that the newer diamond-trading centers are still striving for.

For Antwerp, in 2026, the direct result of sanctions on Russia means that its trading center needs to build an entire infrastructure to check for sanctioned origin diamonds, and many of the trading houses have adjusted their sourcing accordingly.

Dubai: The Rising Alternative

Dubai has been actively working on becoming the alternative choice for Antwerp, especially in relation to rough coming out of diamond producing countries that are not aligned with Western politics. Hundreds of diamond businesses are based in Dubai Multi Commodities Centre (DMCC), which has observed a notable increase in rough trading since 2022.

It has been argued by critics that Dubai is serving as the means for sanctioned Russian rough to move through the global diamond industry. Others believe that DMCC has strict compliance procedures in place, and the increased volume merely indicates healthy market expansion.

As a purchaser and supplier/wholesaler of diamonds in 2026, Dubai’s market should matter for price setting of midrange products.

Collusion in the Diamond Supply Chain – The Truth behind the Scenes

The Background to This Issue

Cartel practices have a long tradition within the diamond industry. De Beers, with an 80% control of the total supply of rough diamonds globally at one point, has had a virtual monopoly throughout much of the twentieth century. Using its Central Selling Organization, De Beers has been able to determine supply levels, prices, and cutting terms all over the globe.

This chapter has come to an end. De Beers no longer controls over 80% of the global market, having shrunk to a mere 30% in today’s terms. Besides, the company has settled some of the largest antitrust suits in the US. However, this does not mean that collusion has ended. Far from it!

Collusion in the Modern Era: Where It Is Found in 2026

Coordination in Rough Prices among Large Miners

Although price fixing agreements are against the law in most countries, large producers have extensive coordination through industry groups, sightholder structures, and market signals. It is hard to believe that when ALROSA and De Beers increase their rough prices at the same time, they act spontaneously.

Laundering the Origin and Working Around the Sanctions

It may be one of the most important collusion-related problems of 2026. The Russian rough diamonds that are currently sanctioned by the EU, US, UK, and other G7 states are allegedly transported via intermediary countries like India or Dubai, where they are cut and polished as Indian or UAE diamonds.

It goes beyond mere compliance issues. In such cases, miners cooperate with traders, cutters, polishers, and logistic companies from various countries. When different organizations work together to bypass the sanctions, they engage in collusion.

In 2024, the G7 decided to introduce a traceability system, which requires all diamonds over 0.5 carats to be accompanied by documents proving the origin of rough diamonds. There are still many imperfections in its implementation in 2026.

Sightholder System Benefits

The sightholder system practiced by De Beers and ALROSA, whereby selected firms are granted the privilege of purchasing rough diamonds under prearranged terms, provides certain benefits for insiders versus independent dealers. Sightholder allotments are occasionally utilized as tools for rewarding loyalty and punishing deviation from established norms among independent dealers.

Suppression of Lab-Grown Diamonds

There is substantial proof that certain organizations involved in the production of natural diamonds and other industry groups have attempted to coordinate the suppression or discrediting of lab-grown diamonds through industry organizations, retailers, and marketing strategies. Although such behavior can be considered competitive action and not collusion, it deserves mention as market coordination.

Implications for Purchasers

As a consumer interested in purchasing natural diamonds in 2026, collusion and market manipulation impact you in terms of price, availability, and the validity of origin statements accompanying your purchase. Here are the measures you can take to safeguard yourself:

Always ask for certificates from GIA, IGI, or HRD – do not accept the shop certificate alone.
Seek answers regarding rough origin – the legitimate supplier must be capable of answering that question.
Check for Kimberley Process certifications on rough origin documentation – while not foolproof, it is an indication of legitimacy.
Deal exclusively with certified Indian diamond vendors utilizing verifiable chain of custody practices.
Avoid purchases of natural diamonds of exceptionally high clarity at abnormally cheap prices.

Part 5: Finding a Trustworthy Diamond Supplier or Wholesaler in 2026

What to Look For

Criteria for Consideration

“Diamond supplier” or “wholesaler” could mean just about anything; at one end of the spectrum, there is the one-person broker, while at the other end is the vertically integrated mining company that cuts and distributes its goods via its own retail outlets. What marks the reliable diamond supplier or wholesaler in 2026?

Association with exchanges Legitimate wholesale diamond suppliers belong to one of the exchanges affiliated with the World Federation of Diamond Bourses (WFDB).
Traceable supply chain The top-notch diamond suppliers and wholesalers in 2026 will have both rough origin papers and polished diamond certification.
Third-party laboratories Reliable diamond suppliers never grade diamonds themselves but rather send them for testing to GIA, IGI, HRD, or locally recognized counterparts in India.
Honesty about pricing basis It should be clear how reliable suppliers base their prices on the Rapaport and IDEX prices.
Physical location and references In the business-to-business diamond industry, verifiable dealer, bank, and trade organization references are de rigueur.

India as a Source of Certified Diamonds

Undeniably, India is the best destination for sourcing a bulk supply of certified polished diamonds. This is due to its exceptional diamond-cutting skills, competitive prices, large volumes of IGI/GIA-certified diamonds, and export-oriented business environment. Therefore, Indian diamond suppliers and wholesalers are the obvious choice for any foreign buyer.

The Bharat Diamond Bourse (BDB) located in Mumbai’s Bandra Kurla Complex is the largest trading complex in the world devoted solely to diamond transactions. Thus, it should be your first stop when you visit India to meet Indian diamond suppliers and wholesalers.

Surat, which is mostly known for its manufacturing activities, also engages in trade, which can come in handy for buyers looking for specific cuts or polishing services.

By 2026, there will be several Indian diamond companies that have established online B2B platforms where you can search for certified diamonds, verify certificates instantly, and make orders under escrowed payment arrangements.

Part 6: Purchasing Natural Diamonds in 2026 — What You Need to Know as a Consumer

Natural vs. Lab Grown: The Market in 2026

Lab grown diamonds have firmly established themselves in the market and are here to stay. Prices for lab grown diamonds have plummeted – they can be 70% to 85% cheaper than their natural counterparts in some classes. The value of natural diamonds is therefore seen as the rare geological phenomenon that they are, as opposed to practical stones.

In order to acquire natural diamonds for purposes such as investment, family jewelry or retail, the distinguishing features should be geological uniqueness and rareness, as well as retention of value over time. Ensure that any diamond you wish to purchase is certified as being ‘natural’, rather than ‘diamond’.

Price Reference Points

The price of diamonds sold in the wholesale market is referred to by the Rapaport Price List, which serves as a weekly pricing standard for the diamond industry. Diamonds sell at either a premium or discount of ‘Rap.’

The year is 2026, and the price of natural diamonds is stable for commercial rounds, the top-selling type. On the other hand, fancy shape diamonds such as oval cuts, cushion cuts, and pear shapes continue to sell at various premiums according to market trends.

It is critical for the buyer to understand that the cost of buying diamonds should almost never equal ‘full Rap.’ The retail market tends to charge a premium to ‘Rap,’ while the wholesale market tends to charge a discount to ‘Rap.’

Important Due Diligence Measures

Validate the diamond certificate on the laboratory website’s certificate verification page.
Determine whether there is fluorescence present in the diamond since too much of it can influence face-up appearance.
Ask the diamond provider to provide ASET or Idealscope images of round brilliant cuts.
Learn about the diamond’s conflict-free status from your seller.
Compare the price with IDEX Online, which provides diamond market pricing to the public in real time.

Conclusion:

Thriving in the Diamond World with Confidence in 2026

While the 2026 diamond supply chain is anything but straightforward, it is entirely navigable — provided that one knows where to look.

From sourcing natural diamonds for an upcoming event to building a sustainable diamond jewelry retail business based on certified diamonds from India or developing a reliable long-term relationship with a diamond supplier or wholesaler, there is no substitute for transparency and documentation. Verify the credentials, check the stone’s origin, and always deal with counterparties who have nothing to hide.

As mentioned before, diamonds mined and processed in India continue dominating the market, which means that one should always stay informed about the latest developments in Surat and Mumbai, the two primary hubs for India’s diamond sector.

Thanks to increased focus on traceability, pressure from G7 sanctions targeting Russian products, and the emergence of digital B2B marketplaces, India’s diamond industry is more transparent now than it was ever before. Still, one must keep in mind that both collusion and opacity continue to exist within the industry.

Therefore, it is vital to conduct thorough research and ask tough questions whenever possible.

FAQ

Listed below are some of the commonly asked questions regarding the diamond supply chain, certified diamonds, and sourcing for 2026.

Question: What is the diamond supply chain and how many stages does it have?

Answer: The diamond supply chain begins with the mining of rough diamonds (from countries such as Russia, Botswana, Angola, Canada, and others), their sorting and selling to authorized buyers, cutting and polishing done at cutting centers (the bulk of which takes place in India where about 90% of all the world’s diamonds are cut and polished), certification by independent gemology labs, distribution via the trading centers located in Antwerp, Mumbai, Dubai, and New York, and finally retail sales to consumers.

Q:1 Is it safe to buy natural diamonds online in 2026?

A: Yes, but with due caution. Always ensure the diamonds you are buying have certificates from GIA, IGI, or HRD that you can confirm on your own by visiting the sites. Use escrow payment if buying for business purposes. Purchase from suppliers that are members of an exchange or a bourse. Be aware of return policies. Due to the emergence of B2B diamond trading platforms in India, buying natural diamonds is becoming safer and easier; however, you must pay attention to the authenticity of the certificates.

Q:2 Why are the prices of certified diamonds lower in India than in Western jewelers?

A: India is considered the diamond cutting and polishing hub. There are lower labor costs in the diamond market in India. Suppliers and wholesalers in India benefit from large economies of scale as well as the ability to access roughs directly. Besides, the diamond suppliers in India are affiliated with internationally recognized diamond certifiers like IGI, where it has its grading laboratory in Mumbai. Therefore, there are fewer middle men to pay for when buying certified diamonds in India.

Q:3 What is the G7 diamond traceability requirement launched in 2024?

A: The requirement, initiated by Canada, France, Germany, Italy, Japan, the UK, and the United States (G7), took effect in several phases in 2024. Importers must present a traceability document showing the origin of a polished diamond over 0.5 carats in a non-sanctioned country. This was meant as a means to prevent Russian rough-origin diamonds from reaching G7 countries following the imposition of sanctions against ALROSA and others. In 2026, its implementation continues, and non-compliance results in shipment holds and fines.

Q:5 What are the steps to get a reputable diamond wholesaler for my jewelry shop?

A: Your starting point should be bourse-related firms; those like Bharat Diamond Bourse in Mumbai, Antwerp Diamond Bourse, and Diamond Dealers Club in New York can give you names of members. Get referrals from fellow retailers, check them out, and see whether a firm has sound banking and supply chain credentials and competitive pricing based on Rapaport reports. Also look for evidence of documented certification, rough-origin documents, and an absence of unreasonable sales tactics.

Q:6 What is the Kimberley Process, and is it still relevant in 2026?

A: The Kimberley Process Certification Scheme (KPCS), founded in 2003, aimed to keep conflict diamonds – diamonds mined in areas controlled by rebels, used to fund their operations – from infiltrating the global market. Diamonds shipped internationally under this scheme must include a certification. By 2026, the Kimberley Process will remain the minimum benchmark, albeit with several recognized flaws. They do not cover polished diamonds, nor do they cover human rights generally, and there are significant differences between countries when it comes to enforcing them.

Q:7 Are Russian diamonds still being traded in the market despite the sanctions?

Answer: Even after implementing G7 sanctions against ALROSA and prohibiting the entry of Russian diamonds in different markets, they are still circulating internationally. This is because the supply chain uses India, Dubai, or other non-sanctioned countries for trading their diamonds. After cutting the diamonds in these countries, they can be exported back as processed diamonds with the country of processing mentioned on them instead of Russia. There have been problems for G7 countries in adhering to this.

Q:8 What’s the difference between GIA and IGI certification on natural diamonds?

A: While both are internationally acknowledged and respected diamond grading labs, GIA (Gemological Institute of America) and IGI (International Gemological Institute) have different standing in the market. GIA is the most conservative and consistent grading lab especially in terms of color and clarity – a GIA G/VS2 will almost definitely grade the same way at any other GIA assessment. IGI was previously thought to be a little more lenient when it comes to grading; however, their standards have become much stricter over the past few years. For higher value diamonds that exceed 1 carat, many people favor GIA certification.

Q:9 In what way has the pricing strategy for lab-grown diamonds impacted the natural diamond distribution chain in 2026?

A: As a result of the huge fall in the price of lab-grown diamonds, which are about 70 to 85 percent cheaper than their natural counterparts in terms of the same quality, the whole market has been divided into two segments. The natural segment now markets its products as extremely rare items, worthy of investment and bequeathed as heritage from one generation to another. The lab-grown segment targets the jewelry and gift market, in which it is the appearance that matters rather than any rarity. As such, the lab-grown alternative has had an impact on commercial-grade natural diamonds.

Q:10 Could there be a chance that we could purchase a diamond that may not be completely natural but synthetically created or enhanced?

A: Unfortunately, there can be a possibility, albeit a small one, that we could buy a fake diamond; however, the likelihood of this happening is greatly reduced if we purchase diamonds that are already certified. There is an obligation for sellers to disclose any information about synthetically created or enhanced diamonds. They are identified by laboratories like the GIA and IGI. It is always best to get a certification before purchasing any diamond.

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