In the west Indian city of Surat, Russian diamond imports have been critical for maintaining its vault position as a global trading hub for the precious stone.
A diamond trader in Gujarat told Sputnik India that it won’t be easy to fill the supply-side gap left by phasing out of Russian rough diamond from Surat’s industry.
Surat Risks Losing a Significant Market Share, Analyst Warns
Edahn Golan, a global diamond industry analyst, told Sputnik India, that the city of Surat would lose a “significant part of the consumer market” if it didn’t comply with the yet-to-be-unveiled G7 sanctions on Russian diamonds.
What Would G7 Sanctions Against Russian Diamonds Look Like?
“The first thing I think people should understand is the G7 decision will probably be a protocol, not a specific technology use requirement. So, while we don’t know what the exact decision will be, the diamond industry will need to rapidly adapt procedures that adhere to that protocol, be it blockchain, a paper trail, or anything else,” Gohan explained.
“There is a proposal by the Belgium government that, if accepted, may temporarily require routing exports to G7 through Antwerp. But until G7 announces its decision, we won’t know what the sanctions will look like from an operational standpoint,” the diamond industry researcher said.
Concerns in Africa
This month, the ADPA wrote to the Kimberley Process, a global mechanism regulating trade in diamonds, opposing the upcoming G7 Diamond Protocol.
“Any company mining in Africa will have less competition in the G7 consumer markets. In addition, the sanctions may lead to a rise in rough diamond prices, which means that African countries will be able to command greater income though royalty payments,” he reckoned.