The man was arrested at Sheremetyevo International Airport in Moscow attempting to board a flight to Israel.
He was stopped at customs for an inspection when officials discovered a plastic bag in his suitcase containing several diamonds of various cuts and weights, ranging from 1.1-3.1 carats.
During questioning, the man initially claimed the stones were gifts for family members. He claimed to have purchased them over the last year at various pawn shops around Russia.
Russian officials raided the man's Moscow apartment and discovered $350,000 in cash.
In Russia, diamonds are designated as strategic goods that are prohibited from export without a special permit, and the maximum punishment for diamond smuggling is a one million rubles ($16,710) fine and up to seven years in prison.
This is not the first time Russian officials have stopped Israeli diamond smugglers, and some of them are on Interpol's wanted list.
About a month and a half ago, a 66-year-old Israeli woman who flew from Tel Aviv to Moscow was arrested on suspicion of smuggling a pair of diamond earrings worth $500,000. She had to declare the earrings and pay a tax of about $110,000.
The woman claimed she did not think she had to report them as the earrings belonged to her and that she was in Moscow to attend an event.