A G7 delegation comprising officials from US Treasury, European Commission, Belgium and Japanese Embassy in New Delhi visited Indian diamond trading hubs of Surat and Mumbai last week.
Officials from India’s Commerce Ministry and the G7 delegation held consultations over the restrictions placed by western countries on Russian diamonds, people familiar with the matter told Sputnik India.
Officials from India’s Commerce Ministry and the G7 delegation held consultations over the restrictions placed by western countries on Russian diamonds, people familiar with the matter told Sputnik India.
Indian officials have been involved in “closed-door” talks with their G7 counterparts on ways to address concerns of Indian diamond industry, which is being affected by western restrictions on Russian diamonds, sources told Sputnik India.
More rounds of talks on the issue are expected to take place in coming months.
Indian Diamond Industry Faces Shutdowns, Suicides due to G7 Sanctions
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More on G7 Delegation’s Visit
Meanwhile, a press statement from the Indian industry organization Gem and Jewellery Export Promotion Council (GJEPC) said that the G7 delegation "expressed their intent to gain insights into the industry’s ground realities and identify potential approaches to sanctions compliance and implementation".
“In response, GJEPC reaffirmed its commitment to facilitating cooperation to address the G7’s concerns with regards to industry compliance,” the statement added.
The GJEPC described G7 delegation’s visit to India as “productive and informative”.
“They gained a comprehensive understanding of India’s diamond industry, its challenges, and potential solutions for compliance with G7 sanctions,” it stated.
G7 Mulls Another Round of Sanctions Targetting Russian Diamond Exports: Reports
According to media reports, the G7 countries are contemplating another round of sanctions against Russia which is aimed at specifically targeting revenues from Russian diamond exports.
Around 90 percent of diamonds are estimated to be cut and polished in India, particularly in the states of Gujarat and Maharashtra. Russian diamonds constitute around a third of India’s overall diamond imports, mostly in the rough diamond segment.
Western countries such as the US have traditionally been an important market for finished Indian diamond products.
But since the Special Military Operation in Ukraine last February, the G7 has been trying to introduce tracing technologies to track the country of origin of diamonds, in a bid to prevent Russian-origin diamond from reaching western markets.