G7 to soon impose sanctions on Russian diamonds

The G7's ban on importing Russian diamonds will be announced at the end of the month, according to Reuters.

The G7 (Britain, the US, Germany, Japan, France, Canada, and Italy) sanctions are expected to be announced next week after a long period of internal debate. It will also coincide with the European Union's 12th round of sanctions, potentially focusing on Russian diamonds. "We now need the final approval of the G7 before it can be translated into legal text at the European level," a source told Reuters .

A spokesperson for global affairs in Canada said that Canada and other G7 members are working with governments and diamond industry representatives on proposals to address traceability and enforcement. The French Foreign Ministry stated that "discussions are being held at the technical level between G7 members and Belgium, in conjunction with diamond businesses."

Rough diamonds are processed at a factory in Moscow on April 30, 2021. Photo: Reuters — Rough diamonds are processed at a factory in Moscow on April 30, 2021. Photo: *Reuters*

Last week, the G7 also held a technical meeting to discuss several proposals put forward by India, Belgium, and businesses. Belgium had previously tried to block Western efforts to ban Russian diamonds. The country warned that its city of Antwerp, through which 90% of the world 's gemstones pass, risked losing business opportunities to Dubai if the ban were implemented.

Currently, according to a proposal from Belgium, the G7 could implement a diamond tracking system similar to the SWIFT international money transfer system between banks. This mechanism is expected to prevent diamonds originating from Russia from entering the market.

To date, imports of rough diamonds from Russia have been banned by the US, UK, Canada, and New Zealand. However, Washington allows the purchase of gemstones mined in Russia but processed in other countries. Meanwhile, Russia is shifting its diamond sales to alternative markets including China, India, the UAE, Armenia, and Belarus.

Earlier this month, several international media outlets reported that the G7 had taken steps to restrict imports of Russian diamonds of one carat or more that have been processed in India. However, the group added that they do not object to traders buying rough diamonds from Russia, polishing them, and selling them to any other market.

According to statistics from the Kimberley Process, a diamond market tracking organization, Russia's rough diamond production in 2022 reached 41.9 million carats, valued at $3.5 billion, representing increases of 7% in volume and 34% in value. However, the country's diamond exports fell to 36.7 million carats, a drop of 24%.

Phiên An ( according to Reuters, RT )

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