G7 Experts Visit India: The Verdict on Russian Diamonds Is Out

Last week, we had shared how G7 experts were going to visit India to assess the russian diamonds influx and sanctions.

Recently, the world has witnessed increasing tensions between Russia and several Western nations, leading to economic sanctions against the Russian government. These sanctions have had far-reaching effects on various industries, including the global diamond trade. One of the significant outcomes of this geopolitical turmoil is the verdict on Russian diamonds, which was recently discussed during a visit by a high-level G7 delegation to India.

The G7 bloc, comprised of influential countries like USA, Canada, France, Germany, Japan, Italy, the United Kingdom, and the United States, has been putting restrictions on Russian diamonds. Specifically, diamonds weighing one carat or more, even those processed by Indian diamantaires, have faced limitations when entering the US and European Union markets.

While there has been no official written confirmation of these economic sanctions against Russian diamonds, the G7 delegation’s visit to India in late September conveyed a clear message to the Indian diamond industry. The verdict is that Russian diamonds of a carat or more will face obstacles when trying to access the US and European markets, even if they have undergone processing in India.

This decision has significant implications for the global diamond trade. India, often referred to as the “Diamond Capital of the World,” plays a crucial role in the diamond supply chain, from cutting and polishing to exporting finished jewelry. The US, in particular, represents the largest market for Indian diamonds. Therefore, any restrictions on the entry of these diamonds into the US market can potentially disrupt the industry and affect its economic prospects.

The G7 delegation’s visit aimed to explore ways of helping the Indian gem and jewelry industry comply with the sanctions while minimizing disruptions. One key point made during the visit was that the G7 countries do not object to India purchasing rough diamonds from Russian mining company Alrosa, processing them, and selling them in other markets. This provides a potential avenue for the Indian industry to navigate these challenging times.

Another critical aspect discussed during the visit was the need for a methodology to trace and track Russian diamonds in the affected markets. Currently, there is no established system for this purpose. However, the G7 has indicated that such a methodology will be developed soon, which could provide clarity and transparency in diamond trade operations.

Belgium, a hub for diamond auctions and trade, also faces repercussions from these restrictions, as it has a role to play in the global diamond industry. Limiting access to the Belgian market could have ripple effects on Indian diamond prospects and the broader diamond trade.

Finally, the G7’s verdict on Russian diamonds of one carat or more reflects the ongoing complexities in global geopolitics and their impact on the diamond industry. The Indian gem and jewelry sector apex body GJEPC has extended it’s support to G7 decision and has requested all stakeholders in the diamond supply chain to adapt to these changes while seeking innovative solutions to ensure the continued flow of diamonds in the global market.


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