G7 to impose an embargo on direct supplies of Russian diamonds from the new year - FT

Western countries have finally agreed to impose sanctions on diamonds from Russia. The ban on imports will come into effect on January 1, 2024, followed by a gradual embargo on the circulation of stones over the course of the year. The decision is to be announced on Wednesday, December 6, after an online meeting of the G7 leaders, which will approve the decision, the Financial Times reports.

If the embargo on direct supplies from Russia comes into force at the beginning of the year, restrictions on purchases from third countries will take effect on March 1. The full system of tracking rough diamonds will start working on September 1, people briefed on the contents of the G7 joint statement told the newspaper.

According to them, the G7 will continue consultations on the tracking system with other partners, including countries involved in both diamond mining and manufacturing of diamond products.

During the transitional period, diamond companies will be able to use a self-declaration system, the Reuters source added. According to him, the embargo will initially apply only to rough stones.

Diamond exports in 2022 brought Russia about $4 billion.

The sanctions have been in the works since last year. In the summer, Belgium, the world's largest jewelry center, withdrew its objections and proposed restrictive measures. According to them, all diamonds over a certain size will receive a unique marking indicating their origin; the data will be recorded in a blockchain. Thus, according to diplomats from the G7 countries, "80% to 90% of the world's diamonds will be marked," which will allow both wholesalers and retailers to instantly separate legal diamonds from illegal ones.

Background. Earlier, the European Commission approved a ban on the sale of Russian diamonds. It is noted that the document may be sent to EU member states in the near future.