This week, G7 nations are set to deliberate on four proposals for banning Russian diamonds from the markets of the "Group of Seven" starting from January 1. These proposals range from self-regulation to stringent import measures, revealing the discord that has made reaching a consensus on the ban challenging for over a year.
According to documents reviewed by Reuters, the four proposals have been put forth by Belgium, India, a French jewelry industry group, and the World Diamond Council. They will be discussed during a technical meeting of G7 representatives on October 19.
The G7 ban could significantly impact Russian diamond exports, as these seven nations – the United States, Canada, Japan, Germany, the United Kingdom, Italy, and France – account for 70% of global diamond demand. Conversely, it would also affect the supply side, given that Russia is the world's largest producer of rough diamonds, contributing to 30% of global demand.
The primary goal of the meeting is to legally define the traceability of diamonds, allowing for the identification of their origin. The European Union and G7 are exploring the possibility of banning Russian diamonds from 2022 as part of sanctions against Russia for its invasion of Ukraine.
