This week, the Group of Seven (G7) countries will discuss four options for sanctions on Russian diamonds in a bid to deprive Russia of an important source of revenue that is helping to finance the war in Ukraine.
Details:
The meeting of G7 technical representatives will discuss four proposals for sanctions on diamonds of Russian origin prepared by Belgium, India, the French jewellery industry group and the World Diamond Council.
The main differences between the proposals concern where diamonds will enter G7 markets, how they will be verified as coming from Russia, what the weight thresholds will be for diamonds, and what the consequences will be for breaking the rules.
India and Belgium propose that the “point of entry” should be their diamond bourses; a French group suggests designating several such points; and the World Diamond Council suggests a more self-regulated system.
The position of New Delhi and Brussels is linked to their role in the global diamond trade. But while Belgium is pushing for a stricter traceability system for gems, which is already in place at the Antwerp bourse, India fears it will place a heavy burden on its small and medium-sized manufacturers.
A diplomatic source told Reuters that the G7 is currently holding “intense technical discussions” on a mechanism to trace the origin of diamonds.
“It’s imperative that we get things sorted out in November if we are to meet the January 1 start date,” the source said.
Background:
The need to ban imports of Russian gems into the European Union was discussed exactly a year ago. In September 2022, five countries – Poland, Ireland, Lithuania, Estonia and Latvia – proposed a ban as part of the seventh package of sanctions.
However, Belgium opposed the move at the time, arguing that sanctions would hurt the country’s diamond business, which accounts for at least 5% of exports and 30,000 jobs. In addition, efforts to stop Russian diamond shipments have been hampered by Russia’s ability to evade sanctions.
