G7 Finally Announce Russian Diamond Sanctions

By John Jeffay / December 07, 2023 / www.idexonline.com / Article Link

(IDEX Online) - The G7 nations finally announced sanctions on Russian diamonds yesterday (6 December) as part of a series of new measures aimed at restricting funds for its war against Ukraine."We will introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, by January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024," leaders said in a statement issued by the White House.It came after a virtual meeting attended by Ukraine's President Volodymyr Zelenskyy. The leaders will also establish a "robust traceability-based verification and certification mechanism for rough diamonds" by September 1, 2024, though they did not provide further details.The G7 nations - US, UK, Canada, France, Germany, Italy and Japan, plus the 27 nations of the EU - jointly account for 70 per cent of the world's diamond sales.Moves to impose effective sanctions have long been expected, after the US imposed restrictions which did not cover the overwhelming majority of diamonds from Russia that are polished abroad.The leaders also said in their statement: "We will continue consultations among G7 members and with other partners including producing countries as well as manufacturing countries for comprehensive controls for diamonds produced and processed in third countries on measures for traceability."The question now is how the ban will be enforced. Four proposals have been put forward as traceability solutions to underpin the G7 sanctions.Frontrunners are the World Diamond Council's G7 Diamond Protocol, a largely self-regulated ban, and a blockchain-backed system being promoted by Belgium.The ban will come into force almost two years after Russian tanks rolled into Ukraine, in February 2021."For 650 days, the Ukrainian people have bravely resisted Russia's illegal aggression. We salute their courage and their resilience, and express our full sympathy and condolences for those suffering," said the leaders in their statement.Pic shows the Udachny diamond mine, in Russia

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