A new analysis from Frost & Sullivan, Outlook of the Russian Diamond Market, finds that the Russian diamond market earned revenue of $4.79 billion in 2010 and is estimated to reach $5.74 billion in 2015.
Although the outlook for the market looks bright with the upswing in consumer demand and climbing diamond prices, there are some challenges throwing a cloud of uncertainty over its future prospects.
Large-scale mining activities have caused depletion of natural resources and environmental deterioration. During the long term, environmental protection will assume greater importance and safety regulations are expected to become more stringent in Russia, in line with global trends.
Frost & Sullivan Research Analyst Monika Nowotnik noted that “the profitability of the diamond market depends on the balance between rising extraction costs and growing diamond prices.”