Amid mounting speculation, the Group of Seven (G7) nations are reportedly on the brink of unveiling sanctions targeting Russian diamonds, marking a consequential move coming 19 months after the incursion into Ukraine.
The proposed sanctions, accompanied by a traceability mechanism, are anticipated to be formally introduced in September, with a projected commencement date of January following the crucial holiday season.
Brad Brooks-Rubin, a prominent figure as a senior adviser within the Office of Sanctions Coordination at the U.S. State Department, underscored that nearly 70% of global diamond purchases stem from G7 consumers.
These sanctions, however, are anticipated to focus solely on diamonds weighing one carat or more, as clarified by Brooks-Rubin. A substantial proportion of Russia’s diamond output comprises smaller stones, thus falling outside the scope of these potential sanctions.
In direct response to the Ukrainian conflict last February, the United States implemented immediate but largely ineffectual limitations on the trade of Russian diamonds. Notably, India and Dubai have refrained from imposing any comparable restrictions.
Alrosa, Russia’s state-controlled diamond mining entity, divulged that its sales for the first half of the year reached $1.9 billion earlier this month, signifying a modest rise from its pre-war revenue.
During their meeting in Hiroshima, Japan, back in May, the G7 coalition—comprising Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union—deferred their verdict regarding the potential sanctions on Russian diamonds.
