Russia has become the world's largest source of rough diamonds, accounting for nearly 25% of world total diamond production. Russian diamond sales are expected to increase about 3.7% in 2012, partly as a result of growing incomes and the expansion of luxury goods in emerging countries. The Russian diamond market, which is export driven and dependent on global demand, is predicted to grow to around $5.74 billion in 2015. 

The Russian diamond industry is booming. Exports of rough  diamonds skyrocketed in 2010 and decision makers are discussing prospective kimberlite deposit extraction. Kimberlite mining could create massive growth in underground mining operations, although it would require new equipment that can function in harsh environments. Russian diamond manufacturers are also experimenting with techniques to improve low-grade ore and to find ways to reduce its high transportation costs. Russian diamond mining has created some environmental problems however, such as depletion of natural resources. Future environmental challenges will have to be addressed.

In order to succeed and maximize efficiency, analysts say the industry will need to modernize and deploy modern equipment. "...The profitability of the diamond market depends on the balance between rising extraction costs and growing diamonds prices," said Monika Nowotnik, an analyst at prominent business research & consulting firm Frost & Sullivan.

 

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