The G7 countries proposed “protocol” to ban Russian diamonds from global supply chains has been met with scepticism at the Kimberley Process Plenary in Zimbabwe.
The meeting is taking place between 6-10 November at Zimbabwe’s Victoria Falls. Eight-five diamond-producing and trading countries are part of the mechanism, accounting for over 99 percent of the global rough diamond trade.
Addressing the Kimberley Process meeting, World Diamond Council (WDC) President Feriel Zerouki expressed concerns that a “two-tier system” was being created in the global diamond trade.
“The upper, more established tier is able to meet consumer expectations. But the lower, less established tier, which does not meet minimum consumer requirements, will see its market share diminishing, through no fault of its own,” Zerouki stated.
While Zerouki refused to directly criticize the G7’s imminent ‘Protocol’ banning Russian rough diamonds, she told the KP participants that the WDC would like to engage with the western countries to implement it in a manner which is “effective and inclusive”.
The G7 proposed ‘protocol’ to ban Russian diamonds seeks to temporarily route the rough diamonds through Antwerp for certification. Such a plan, if implemented, would make the Belgian diamond trading city the de-facto gateway for imports into western markets, including the US.
As highlighted by Zerouki in her address the WDC’s version of protocol relies on self-regulation by individual governments than routing diamonds to Antwerp.
The G7 countries together constitute around 70 percent of global market for polished diamonds. On the other hand, Russia is the biggest global producer of diamonds, contributing around third of the global rough diamond supply.
However, Africa, as a continent, is the biggest diamond-producer globally, with the precious stone being mined in around 19 African countries.
Meanwhile, India is the biggest importer of rough diamonds, most of it sourced from Russia. The south Asian nation is also the biggest exporter of polished diamonds.
Concerns in African Nations Over G7 Pressure
Several African diamond producing nations expressed their concerns over the western countries’ push to phase out Russian diamonds at the KP meeting.
The South Africa delegation called out G7 for its double standards in trying to ban Russian diamonds while turning a blind eye to diamonds exported from other conflict-affected nations in Africa.
Previously, the African Diamond Producers’ Association (ADPA), which comprises the continent’s diamond-producing nations, had accused the western nations of trying to undermine the Kimberley Process.
The ADPA has said that re-routing of stones to Antwerp, as envisaged by western nations, would add supply-side constraints to the global diamond trade.
The African nations have said that they weren’t consulted by western governments on the Russian ban, despite accounting for half of the global diamond production.