A ban on imports of Russian diamonds is expected to be agreed by Group of Seven nations in the next two or three weeks, a Belgian official said Friday.
The mechanism will consist of a direct ban on purchases, which would take effect on Jan. 1, as well as indirect ban, which would kick in more gradually, the official added.
Earlier attempts to sanction Russian gems in Europe had met resistance from leading importer nations like Belgium, which had argued that a simple ban would just shift the lucrative gem trade elsewhere. The indirect element of the ban is aimed at trying to restrict that dynamic by tracking the Russian gems across border. Belgium isn’t a G7 member, but previously said it would support a ban if the G7 can find an effective mechanism.
The G7 and its European allies are trying to find additional ways to squeeze Russia’s economy to constrain its ability to fund its war in Ukraine.
A diamond’s origin is clear at the start of the supply chain when it is issued a certificate under the Kimberley Process, which was designed to end the sale of so-called blood diamonds that financed wars. After that, they can become difficult to track.
The G7 still needs to sort out technical details of the diamond ban, and then the European Union can develop its sanctions regulation in the fall, the official said. The plan is to ban purchases of rough or polished diamonds, whether directly from Russian giant Alrosa PJSC or from re-sellers in India or the United Arab Emirates.