Editor’s Note
This article discusses the G7’s move toward banning Russian diamond imports, a significant step that could reshape the global diamond market. The initiative, backed by major importers like Belgium, aims to curb indirect purchases from Russia.
Diamonds, symbols of beauty and prestige, are at the heart of a new decision by the Group of Seven (G7) that could change the game in the global market for these precious stones. Belgium, one of the world’s leading diamond importers, has recently advocated for concerted G7 action to ban imports of Russian diamonds. This initiative, which includes a mechanism aimed at stopping indirect purchases from Russia, now appears to be materializing.
According to a Belgian official, it is expected that G7 nations will reach an agreement on this ban on Russian diamond imports within the next two to three weeks. The mechanism in question will include both a direct purchase ban, which will take effect on January 1, and an indirect ban, which will be gradually implemented.
Previous attempts to sanction Russian gems in Europe had met with strong resistance from major importing nations such as Belgium. They argued that a simple ban would merely shift the lucrative diamond trade to other regions. It is precisely to counter this dynamic that the indirect element of the ban was introduced, aiming to track Russian diamonds across borders.
Although Belgium is not a member of the G7, it had previously stated that it would support a ban if the G7 managed to find an effective mechanism to enforce it. This decision is part of the concerted effort by the G7 and its European allies to exert increased economic pressure on Russia to limit its ability to finance its war in Ukraine.
The crucial question of a diamond’s origin is clear at the start of the supply chain, when they are issued a certificate under the Kimberley Process, designed to stop the sale of so-called “blood diamonds” that funded wars. However, once this step is passed, tracking diamonds can become difficult.
The G7 still needs to settle the technical details of the diamond ban, after which the European Union can draft its sanctions regulations in the autumn, according to the Belgian official. The plan aims to ban the purchase of rough or polished diamonds, whether directly from the Russian giant Alrosa PJSC or from resellers in India or the United Arab Emirates.
Alrosa, which produces about 30% of the world’s diamonds, declined to comment on the decision. The world of diamonds, once synonymous with purity and beauty, is now at the center of an initiative to exert economic pressure on Russia. The effectiveness of this measure and its repercussions on the global diamond market remain to be seen, but one thing is certain: Russian diamonds are now at the heart of a controversy that goes far beyond their sparkle.