Mumbai: G7 leaders on Wednesday agreed to impose a direct import ban on Russian diamonds as of January, while introducing a tracing system for diamonds during next year.
Russian diamonds are one of the last resources not sanctioned by the G7, meaning the profits from selling them can go into the Kremlin’s war chest.
On Wednesday, G7 leaders decided to “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,” they said in a statement.
Statement of Mr. Vipul Shah, Chairman, GJEPC:
“The recent statement from G7 leaders, informing of a decision to impose direct import restrictions on Russian-origin diamonds effective January 1, 2024, and on diamonds processed by third countries from March 1, 2024, while not surprising, raises valid concerns for the Indian Gems and Jewellery trade. We had engaged with the G7 to discuss such sanctions and their implementation.
We have reservations on the timelines announced for the implementation of restrictions. Recognizing the diversity of our industry, we believe there should be more flexibility in these timelines.
While respecting the G7’s decision, we would like more details on how such decisions will be implemented. We have questions about what is meant by a major rough diamond importer in the G7 and the powers it will have in determining the compliance of Indian diamond exports to the G7.
We are happy to note that the G7 will remain engaged with us as diamond manufacturers. GJEPC will strongly advocate that when regulating the sanctions the interests of SMEs and marginal diamond units should be kept in mind, recognizing their active contribution to this industry and the millions of livelihoods which are dependent on it. We will also be discussing with WDC and aligning all stakeholders to ensure that their businesses are not disrupted.
We are also making representations to the Indian Government, and we are confident that our leadership will ensure that the interests of the Indian trade are not compromised in any way.”
