Industry speculation over the future of diamonds sourced from Russia has ramped up, with media sources suggesting further prohibitions will be installed in early 2024.
Rob Bates of JCK Online has reported that all G7 countries – Canada, France, Germany, Italy, Japan, the UK, the US, and EU – will prohibit the import of gemstones mined in Russia, even those cut and polished overseas.
“To date, the industry has not exactly provided a united front. US groups and companies—particularly bigger names that already have sourcing protocols in place—say they support the government’s aims,” writes Bates.
“Antwerp initially opposed all sanctions, arguing the goods would just go to Dubai; it now insists that only a ‘science-based’ origin solution (such as Spacecode) would work. But most consider such technology a long shot, and recently the Belgian government has indicated it will move forward with sanctions, whether Antwerp likes it or not.”
The report suggests that the new restrictions will come into effect in January, with regulations possibly limited to diamonds one-carat or larger. The minimum weight could decrease as over time.
Customs will require importers to declare their diamonds aren’t from Russia, however; other provenance information will not be required.
“Clearly, the diamond industry is about to undergo a major change. In 2000, when the trade agreed to form the Kimberley Process, it made a conscious decision to separate diamonds into two streams: non-conflict (inside the KP) and conflict (outside),” the report continues.
“Now, in addition to embracing tracking and tracing, the diamond world seems to be moving toward two more streams: one without Russian diamonds (inside the G7) and one with (everywhere else).”
Bates added: “Of course, no system will be perfect, and the G7 doesn’t have the same reach as the Kimberley Process — which encompasses almost every diamond center or producer on Earth. Yet the US remains the biggest market, so the trade will have a hard time ignoring what’s going on.”
In the US, these proposed new prohibitions would likely require either new legislation or a modification of the existing executive order banning Russian diamonds.
More reading
US diamond traders told to prepare for new sanctions
Russian leadership dismisses suggestions of sanctions
Signet CEO says excluding Russian diamonds will prove fruitful
De Beers denies violating Russian diamond sanctions
New leadership for Russian diamond mining giant
Reputations at stake as Russian diamond trade survives sanctions
