There is growing speculation that the G7 countries will announce sanctions on Russian diamonds in September. These sanctions, supported by a tracking system, may be put into effect in January, following the crucial holiday season, per a report in the New York Times, quoted by IDEX Online.
Brad Brooks-Rubin, a senior adviser in the Office of Sanctions Coordination at the State Department said that G7 consumers account for nearly 70% of all diamond purchases. However, it is expected that these sanctions will primarily target diamonds with a carat weight of one or more, leaving out a significant portion of Russia’s diamond production, which consists of smaller stones.
During a G7 meeting held in Hiroshima, Japan, in May, the decision to impose sanctions on Russian diamonds was postponed until a later date. The G7 nations include Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union (EU).
In related news, India has formally requested the US to unfreeze $26 million belonging to at least two Indian diamond companies, which had their assets frozen due to suspected trading ties with the sanctioned Russian diamond giant Alrosa. According to Mining Weekly, this request was made by India through diplomatic channels, as reported by three Indian sources who spoke with Reuters.