According to unnamed sources, India has urged the Group of Seven (G7) nations to postpone the impending ban on Russian diamonds due to a lack of clarity in the regulations governing the traceability of gem origins, Mining Weekly reports.
As the host to 90% of the world’s diamond cutting and polishing industry, India plays a pivotal role in the enforcement of the ban. The sources revealed that New Delhi has also sought more explicit details in discussions with G7 leaders.
Earlier this month, the G7 countries announced a direct ban on Russian diamonds from January 1, followed by phased-in restrictions on indirect imports of Russian gems starting around March 1. A new system to trace the origin of the gems is set to be introduced in September. Russia is the world’s largest producer of rough diamonds by volume.
One source pointed out that “the timeline to start restrictions on indirect imports from Russia in three to four months is impractical, as the rules on how the origin for a gem will be traced are not clear.” India has also raised concerns about the G7’s proposed “traceability-based verification and certification” system, which may involve sharing data about Indian businesses, potentially including sensitive information that businesses may be hesitant to disclose.
Once again, India’s polished diamond exports fell in November, a decline attributable to manufacturers scaling back on rough diamond purchases in adherence to a two-month voluntary ban. Total foreign sales fell from $1.67 billion in September to $1.26 billion in October and $1.1 billion in November. This represents a 12% decrease compared to the previous month and a corresponding 12% decline compared to November 2022.
In related news, Japan, a member of the G7, has decided to participate in the prohibition of non-industrial diamond imports from Russia. However, the significance of this action is largely symbolic, considering that the total imports in 2022 were less than $400,000.”
