03.10.2023, 18:56
G7 will not force Indian diamond cutters to give up diamonds from the Russian Federation
Source: OREANDA-NEWS
OREANDA-NEWS Representatives of the G7, who will agree on the parameters of possible new restrictions on diamonds from Russia, do not object to the purchase of these stones by the Indian lapidary industry.
According to the Indian edition of The Economic Times, unacceptable, according to the G7, is only the penetration into the market of the countries of the group of faceted and polished stones of Russian origin weighing 1 carat and above.
Representatives of the G7 arrived in India at the end of September to get acquainted and consult with the Indian industry of precious stones and jewelry. The industry, which employs 1.5 million people, is now under pressure due to a reduction in demand for diamonds amid the global economic downturn, which forced Indian cutters to request a two-month suspension of purchases from diamond miners.
G7 representatives are exploring ways that will allow Indian diamond buyers to comply with the group's sanctions against Russia with minimal or no violations, Bharat Diamond Bourse President Anup Mehta said.
He said that Russian diamond dealers will have to adhere to a system of guarantees to ensure traceability of the origin of the stones. To do this, one of the protocols will be determined - Belgium, India or the World Diamond Council (World Diamond Council). After that, two more rounds of negotiations with the G7 will take place.
Earlier, the New York Times and Bloomberg reported on the possibility of the announcement of sanctions by the G7 countries in September-October with their entry into force after the holiday sales in early 2024. At first, the restrictions will apply to stones from 1 carat, later the sanctions will cover smaller stones from Russia, the NYT reported with reference to OFAC senior adviser Brad Brooks-Rubin (Brad Brooks-Rubin).
The embargo, unlike the current US sanctions, may affect stones cut in other countries. Although ALROSA has been included in the SDN list since last spring, diamonds produced from Russian rough diamonds can freely enter the US market, undergoing significant processing in the Indian gem cutting and polishing industry.
Previous attempts to include ALROSA in the EU sanctions lists were blocked by Belgium. Such sanctions will hit the interests of participants in an important industry for this country (one of the world's largest diamond trading centers is located in Antwerp), and in the absence of a tracking mechanism, transactions will simply move to trade centers outside the EU, Belgian officials noted.
In order to limit the trade in Russian diamonds, which is estimated at $4 billion annually, G7 representatives are seeking to improve tracking methods. Meanwhile, at the moment there is no technology to determine the origin of small diamonds that have been cut and polished.
According to the Indian edition of The Economic Times, unacceptable, according to the G7, is only the penetration into the market of the countries of the group of faceted and polished stones of Russian origin weighing 1 carat and above.
Representatives of the G7 arrived in India at the end of September to get acquainted and consult with the Indian industry of precious stones and jewelry. The industry, which employs 1.5 million people, is now under pressure due to a reduction in demand for diamonds amid the global economic downturn, which forced Indian cutters to request a two-month suspension of purchases from diamond miners.
G7 representatives are exploring ways that will allow Indian diamond buyers to comply with the group's sanctions against Russia with minimal or no violations, Bharat Diamond Bourse President Anup Mehta said.
He said that Russian diamond dealers will have to adhere to a system of guarantees to ensure traceability of the origin of the stones. To do this, one of the protocols will be determined - Belgium, India or the World Diamond Council (World Diamond Council). After that, two more rounds of negotiations with the G7 will take place.
Earlier, the New York Times and Bloomberg reported on the possibility of the announcement of sanctions by the G7 countries in September-October with their entry into force after the holiday sales in early 2024. At first, the restrictions will apply to stones from 1 carat, later the sanctions will cover smaller stones from Russia, the NYT reported with reference to OFAC senior adviser Brad Brooks-Rubin (Brad Brooks-Rubin).
The embargo, unlike the current US sanctions, may affect stones cut in other countries. Although ALROSA has been included in the SDN list since last spring, diamonds produced from Russian rough diamonds can freely enter the US market, undergoing significant processing in the Indian gem cutting and polishing industry.
Previous attempts to include ALROSA in the EU sanctions lists were blocked by Belgium. Such sanctions will hit the interests of participants in an important industry for this country (one of the world's largest diamond trading centers is located in Antwerp), and in the absence of a tracking mechanism, transactions will simply move to trade centers outside the EU, Belgian officials noted.
In order to limit the trade in Russian diamonds, which is estimated at $4 billion annually, G7 representatives are seeking to improve tracking methods. Meanwhile, at the moment there is no technology to determine the origin of small diamonds that have been cut and polished.
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