Australia’s diamond back door: Blood jewels slipping past borders to fund Russia’s war
Sydney Morning Herald
by Sherryn GrochFebruary 23, 2026
AI-Generated Deep Dive Summary
Australia’s diamond trade with Russia is raising concerns over potential loopholes that could be funding Moscow’s war efforts in Ukraine. A new report by Transparency International reveals that Russian diamonds, often processed through countries like India and Dubai, are slipping into Australia despite existing sanctions. These gems, sourced from Kremlin-owned mines, are being sold to Australian wholesalers through shell companies, bypassing strict origin tracking measures implemented by other G7 nations. While Australia has sanctioned Russia’s largest diamond producer, Alrosa, it hasn’t followed the G7 in imposing a outright ban on Russian diamonds or enforcing mandatory proof-of-origin requirements.
The report highlights that Russian diamonds are flooding markets like Australia, which haven’t banned them outright. These stones often undergo multiple transactions and rebranding during processing, making their true origin nearly impossible to trace for consumers. For instance, Alrosa diamonds were found to be sold through an Indian refiner before reaching an Australian wholesaler in multiple shipments totaling nearly a million dollars. This shadowy trade not only props up Russia’s war machine but also underscores how loopholes in Australia’s sanctions framework could inadvertently support Moscow’s military operations.
Experts warn that the diamond industry’s secrecy and lack of transparency make it difficult to track the flow of Russian stones. Many retailers, including big-name brands like Tiffany’s, have boycotted Russian diamonds, but smaller stores often remain unaware of their true origin due to the complex supply chain. This raises ethical concerns, as consumers may unknowingly be contributing to Russia’s war chest by purchasing diamonds from Australian shops.
The report also points out that Russia has used its veto power in international bodies to block efforts to classify its diamonds as “blood diamonds.” By exploiting gaps in global sanctions and leveraging its control over diamond production, Russia continues to generate billions of dollars annually, helping sustain its war effort. The situation highlights the need for stricter international regulations and greater consumer awareness to ensure that diamond purchases don’t inadvertently fund conflict and human rights abuses.
This issue matters deeply to readers interested in global affairs, as it reveals how economic ties can have far-reaching consequences in times of war
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Originally published on Sydney Morning Herald on 2/23/2026