Editor’s Note
This article outlines the G7’s evolving sanctions policy on Russian diamonds, extending import bans to include stones processed in third countries.
Following Russia’s invasion of Ukraine, the G7 has moved to restrict imports of Russian diamonds, extending the regulatory net to include rough diamonds processed in third countries. This measure was incorporated into the G7 leaders’ statement at the “Hiroshima Summit” in May 2023. Subsequently, the G7 leaders’ statement on December 6, 2024, confirmed a policy to phase out imports of Russian-origin diamonds even after processing in third countries. This is part of the sanctions against Russia for its invasion of Ukraine.
Russia is the world’s largest diamond producer, accounting for over 30% of global rough diamond supply. In 2021, before the sanctions, Russia’s diamond exports amounted to approximately 550 billion yen. Following the economic sanctions imposed after the invasion of Ukraine in February 2022, imports to India, which had processed about 70% of Russian rough diamonds, have remained halted.
Against the backdrop of Russia’s invasion of Ukraine and US-China trade frictions, gold prices have surged. This reflects a heightened valuation of gold as a tangible asset rather than a currency.
Gold possesses a universal value worldwide and is an asset less susceptible to exchange rate fluctuations. Similarly, gemstones, including diamonds, hold international value. While representative gemstones include diamonds, rubies, sapphires, and emeralds, diamonds remain the most popular.
As an economic principle, rarer gemstones command higher prices. The reason diamonds, despite high production volumes, do not suffer price collapses is attributed to factors such as market supply control.