Moscow Bourse Suspends WFDB Membership

RAPAPORT… The Moscow Diamond Bourse paused operations during the Russia-Ukraine war and has stepped back from the World Federation of Diamond Bourses (WFDB).

The exchange temporarily stopped its activity on March 7 and suspended its membership in the WFDB on April 3, the federation announced Monday.

Founded in 2005, the Moscow Diamond Bourse joined the WFDB in 2006. It is primarily a trading hub for polished originating from manufacturers in cutting centers such as India. It mainly serves the local Russian jewelry market, explained Alex Popov, its president.

The decision to stop operations was because of an “uneasiness” with Russia’s actions in Ukraine, according to Popov, who is currently based in Israel. The Western sanctions against Russia in response to the February 24 invasion were not a factor, he said.

“We are against the war, and we felt it’s not the right time to deal with diamonds in Russia,” he told Rapaport News.

In addition, many bourse directors and members are expats who decided to leave Russia.

“There [was] no point in doing too much activities, [so] we just closed the office and said, ‘We’re going to wait until the new times and we’ll see how it will develop,’” Popov added.

The bourse wrote to the WFDB on April 3 to inform it of its decision to leave, noting that it looked forward to “the end of hostilities” and expressing hope for a return to normality.

Popov “acted responsibly in shutting down its activities and suspending its membership in the WFDB,” commented WFDB president Yoram Dvash.


Image: Red Square, Moscow. (Shutterstock)