The G7 member countries are set to convene soon to go over four approaches for banning Russian diamond exports from G7 markets starting January 1 – from a lighter-touch self-regulation approach to stringent import restriction, according to a report in Reuters quoted by Mining Weekly.
The proposers of these strategies include Belgium, India, a prominent French jewelry industry consortium, and the World Diamond Council. High-level insiders linked to the negotiations have confirmed that these proposals will be the focal point of a technical meeting among G7 representatives scheduled for Thursday, October 26.
A G7-imposed ban would significantly impact Russian diamond exports, as the G7 nations – the US, Canada, Japan, Germany, Britain, Italy, and France – constitute 70% of the global diamond demand. This ban would also disrupt the supply chain, as Russia stands as the largest global producer of rough diamonds, contributing to 30% of the global supply.
The primary objective of this meeting will be to achieve a legally sound and universally accepted definition of diamond traceability, so the origin of the diamonds can be ascertained.
A source familiar with discussions said: “Part of the reason we are stalled is that … it’s an indirect ban – it’s on Russian diamonds coming (into G7) from outside of Russia. It’s more complicated. There’s tension between keeping momentum with a political statement first or whether the technicals need to be decided in full first. In November we absolutely need to clear things up if we want to meet the Jan. 1 start.”
Reaching a consensus has proven challenging due to the potential impact of the ban on the business conditions of major diamond centers in the world, including Belgium, India, and the US, which collectively dominate the $87 billion natural diamond jewelry industry.
Key disparities among the proposals include the entry points for Russian diamonds into G7 markets, the verification processes for their Russian origin, the weight thresholds, and the consequences for non-compliance. India and Belgium advocate for their respective diamond centers in Mumbai and Antwerp as entry points, while the French consortium prefers multiple entry points to prevent bottlenecks, and the World Diamond Council supports a self-regulating system. The weight threshold for polished stones may be set at 1 carat or higher.
