The president of the World Federation of Diamond Bourses (WFDB), Yoram Dvash, has voiced concerns over the implementation of the G7 diamond compliance system aimed at curbing the trade in sanctioned Russian diamonds.
In an open letter reported on Rough & Polished, Dvash highlighted the ongoing “dismay and uncertainty” within the diamond industry regarding the G7’s enforcement of sanctions. He noted a growing momentum within the industry to push for changes to the system to minimize disruptions.
According to the letter, despite industry bodies like WFDB, WDC, GJEPC, and IDMA issuing a call to action to the G7 governments, no official response has been received, although there are indications of receptiveness to the proposal.
The establishment of a single entry point for diamond products in Antwerp has raised concerns among industry players, leading to differences of opinion within the Antwerp diamond industry.
“It seems clear that the Antwerp diamond industry is not happy over the controversy and the potential damage of the one-node system,” Dvash wrote.
India has expressed willingness to comply with the new G7 sanctions but raised concerns over the additional costs it would incur for its diamond screening center, particularly affecting low-margin diamond manufacturing. African diamond mining countries have also urged the G7 to reconsider their decision, citing potential logistical challenges and threats to local beneficiation.
Dvash concluded: “I am confident that the drive to alter the G7 Russian diamond sanctions scheme will gain increased momentum as the weeks go on.”
In news related to the G7 sanctions, Alrosa is reportedly planning to sell its 41% stake in Catoca, the Angolan diamond mine, as the government of Angola has urged its unconditional withdrawal from Sociedade Mineira de Catoca due to G7 sanctions.
According to IDEX Online, Russia’s deputy finance minister Alexei Moiseyev told reporters: “The Angolans believe that the presence of Alrosa as a key shareholder is preventing them from developing their business. In general, they have fair reasons for this. In general, they have fair reasons for this. We are already seeing that many Western companies, both suppliers and buyers of stones, are beginning to say, ‘You have Alrosa as a shareholder, so we will not work with you’.”
