G7 to Discuss Potential Effects of Import Restrictions on Russian Diamonds During India Visit

G7 Looks To Take Shine Off Russian Diamonds During India Visit Next Week

Representatives of G7 group will travel to Mumbai and Surat to discuss potential effects of any G7 restrictions on imports of rough Russian diamonds.

The G7 countries are working on a tracing system that would allow them to block imports of stones mined in Russia.

The plan could transform the global diamond supply chain, but implementation will depend heavily on India, whose diamond industry employs millions of people.

Officials in Belgium expect the G7 to announce the ban in coming weeks in a bid to tighten a squeeze on Russia’s capacity to finance the war in Ukraine.

G7 Looks To Take Shine Off Russian Diamonds During India Visit Next Week

Western nations are sending representatives to India, home to 90% of the world’s cutting and polishing of the rare gems, to discuss potential effects of any G7 restrictions on imports of rough Russian diamonds, two Biden administration officials said.

Tracing System to Block Russian Diamond Imports

The G7 countries are working on a tracing system that would allow them to block imports of stones mined in Russia, the world’s largest producer of rough gems. The plan could transform the global diamond supply chain, but implementation will depend heavily on India, whose diamond industry employs millions of people.

G7 Expected to Announce Ban in Coming Weeks

Officials in Belgium expect the G7 to announce the ban in coming weeks in a bid to tighten a squeeze on Russia’s capacity to finance the war in Ukraine. Belgium, which is not in the G7 but is a member of the European Union, has been blocking any sanctions on Russian diamonds sought by hawks in the EU.

Following Moscow’s invasion of Ukraine, Washington imposed sanctions on Alrosa and barred the import of non-industrial goods from Russia. The move to restrict rough Russian diamonds is seen as another step to put pressure on Russia.

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