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The Indian government has asked the United States to release $26 million belonging to Indian diamond companies after these assets were frozen due to alleged trading ties with a sanctioned Russian diamond company, ALROSA, Radio Free Europe/Radio Liberty reported on Aug. 30. Until recently, Indian businesses had not been directly impacted by Western sanctions against Russian companies.
According to a previous Reuters investigation, unnamed Indian diamond companies in the UAE tried to pay for the purchase of rough diamonds. Reuters could not determine whether the money paid by these companies was transferred to accounts belonging to the Russian ALROSA or other recipients.
ALROSA is the largest producer of rough diamonds in the world and India has the world's largest diamond processing and exporting facilities. They buy rough diamonds in a number of countries, including the UAE and Russia.
Earlier this month, Reuters reported that India is in talks with Moscow to import Russian wheat at discount prices in an attempt to push down food inflation ahead of the upcoming elections next year.