Russia’s Trade and Economic Developments Amidst Geopolitical Tensions

In recent months, Russia has seen significant developments in its trade and economic landscape, influenced by both internal policies and external geopolitical tensions. Here are some key highlights that business professionals should be aware of:

1. Alrosa Unveils Russia’s Largest Diamond:
   Alrosa, the Russian diamond producer, has unveiled the ‘New Sun,’ a 100-carat vivid yellow diamond, the largest ever found in Russia. This diamond was cut from a 200-carat rough diamond mined at the Ebelyakh mine in Sakha (Yakutia). The cutting process, which involved fifteen top Russian jewelers over two years, showcased the precision and brilliance of the Russian Cut technique. Despite the EU and G7 import bans, Alrosa plans to produce 29 million carats in 2025. Source

2. Russia’s Clothing Imports from China Plummet:
   Russia’s imports of clothing from China decreased by more than 22% year-on-year in February, reaching USD 187.6 million, the lowest level since April of the previous year. Footwear imports also dropped by 28%, totaling USD 177.4 million. This decline is attributed to various factors, including geopolitical tensions and economic sanctions. Source

3. OPEC+ Oil Production Hits 8-Month High:
   OPEC+ oil production reached a record 41.04 million barrels per day (b/d) in March, the highest in eight months. This increase is attributed to the easing of production restrictions and the planned production increase in May. However, Russia and Saudi Arabia, the largest producers, produced below their quotas. Source

4. Russia’s Economic Aid to Cuba:
   Russia has pledged to continue providing economic and humanitarian aid to Cuba. This announcement was made during a working visit by Russian Deputy Prime Minister Dmitry Chernyshenko. The aid includes fire and rescue motorcycles, generators, water filters, medical supplies, and food. This assistance marks the 65th anniversary of the restoration of bilateral diplomatic relations between Russia and Cuba. Source

5. Moscow Luxury Real Estate Boom:
   Moscow’s luxury real estate market saw an 82% surge in sales in Q1 2025 compared to Q1 2024. Premium segment sales reached 50,000 sq m, a 56% increase year-on-year. This growth is attributed to market revival, new property launches, and eased family mortgage terms. Source

6. Consumer Lending Stagnant in Early 2025:
   Consumer lending growth in Russia was minimal in early 2025. Sberbank, the largest player, saw a decrease in consumer loan issuance, portfolio, and market share in March 2025. High interest rates and macroprudential limits are cited as reasons for this stagnation. Source

These developments highlight the dynamic nature of Russia’s trade and economic environment, influenced by both domestic policies and international relations. Business professionals should closely monitor these trends to navigate the complexities of the Russian market effectively.