Editor’s Note
This article, based on a New York Times report, examines the potential global market implications of new G7 sanctions targeting Russian diamonds. As the world’s largest diamond exporter, Russia’s gemstone trade has faced increasing international restrictions.
New sanctions by the G7 countries against Russia could have an impact on the global diamond market, as reported by the “New York Times”. Russia is the world’s largest diamond exporter. The import of Russian gemstones has already been restricted by some countries in the past.
According to the report, the G7 countries and other European states plan to ban the import of all gemstones mined in Russia, even if they are cut and polished in other countries. This could have massive effects on the market, as consumers in the G7 states account for almost 70 percent of all diamond purchases. An import ban would therefore severely limit the opportunities for selling Russian diamonds on the global market.
Simultaneously, prices could rise if global demand cannot be met by diamonds from other countries. However, the diamond industry has already been expecting sanctions, which is why jewelry prices are likely to increase gradually rather than suddenly. According to reports, the new sanctions by the G7 nations are to be announced in September and are expected to take effect from January of the coming year – after the crucial Christmas business for the industry.