The mechanism will consist of a direct ban on purchases, which would take effect on Jan. 1, as well as indirect ban, which would kick in more gradually, the official added.
The state-backed Russian Direct Investment Fund (RDIF) will work with an Indian fund to invest USD1 billion in Asia's third-largest economy, the head of the fund said before a bilateral summit expected to yield several big business deals.
Twelve Indian companies will buy diamonds worth USD 2.1 billion in the next three years directly from Russian diamond mining giant ALROSA.