Cartier, Patek Philippe and Chopard may face difficulties due to shortage of Russian gold and diamonds | World Fashion Channel

Cartier, Patek Philippe and Chopard may face difficulties due to shortage of Russian gold and diamonds

Trends
Read min

03 Jun 2022

Conducting a special operation in Ukraine complicated the work of large jewelry companies, which received most of their raw materials from Russia and Ukraine. Sanctions prevent them from buying gold and diamonds directly, which could disrupt the production chain for expensive watches and jewelry. According to the World Diamond Council, Russia is the world's largest producer of natural diamonds and the second largest gold miner according to the World Gold Council.

Global Look Press

Some jewelry brands voluntarily refused to purchase raw materials in Russia after the events of February 24th. So, Cartier Richemont announced back in March that it would stop buying Russian diamonds and processed gold.

Other companies began to receive secondary gold through a complex supply chain. Rumor has it that now Russian gold and diamonds can be bought in Dubai without violating sanctions, which many jewelry companies do. However, this information has not yet been proven. “It can be assumed that gold from Russia enters Western supply chains via Dubai,” Robin Kolvenbach, chief executive of Swiss gold refinery Argor-Heraeus, told Reuters.

Companies such as Patek Philippe, Rolex and Chopard have faced difficulties in buying pure gold and diamonds. Their representatives say that the firms had to develop their own system for tracking gold from mine to finished product and their own diamond certification model.

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