Editor’s Note
The G7’s proposed inspection regime for Russian diamonds aims to curb Kremlin revenues but risks destabilizing the global diamond industry. This report examines the potential impact on key hubs like Surat, India.
The G7 nations are working on an inspection regime aimed at targeting Russian diamonds and drying up Kremlin revenues. However, this move could destabilize a global industry.
In Surat, India, an expert examines a diamond under a loupe. The city is a major global diamond cutting and polishing hub, and any sanctions on Russian rough diamonds would have significant ripple effects here and throughout the global supply chain.
The proposed measures highlight the complexity of the diamond trade. Once cut and polished, diamonds lose their geographic origin, making it extremely difficult to trace a stone back to its source mine. This characteristic has long been a challenge for regulators and ethical sourcing initiatives.
The plan under discussion involves creating a traceability system and potentially routing all diamond imports through a single hub for verification. This would represent a major shift in how the multi-billion dollar industry operates.