India ‘Not Happy’ With Timeline of G7 Ban on Russian Diamonds

India’s peak diamond trade body, the Gems and Jewellery Export Promotion Council (GJEPC), has expressed concern over the G7’s decision to impose import restrictions on Russian-origin diamonds processed in third countries from 1 March, 2024.

“We are not happy with the announced timeline for implementation of restrictions. Recognising the diversity of our industry, we believe there should be more flexibility in these timelines,” a statement from GJEPC said on Thursday.

The Indian association demanded more details on the specifics of implementation of the G7’s decision aimed at phasing out Russian-origin diamonds from global supply chains.

“We have questions on what they mean by major rough diamond importer in G7 and what will be the powers it will have on determining the compliance of Indian exports of diamonds to G7,” the GJEPC underlined.

Around 90 percent of the rough diamonds in the world are polished in India. Russian diamond mining giant Alrosa has traditionally been a major supplier of rough diamonds to India.

On the other hand, around 50 percent of these polished diamonds from India were exported to the US in 2021, according to official statistics.

The GJEPC stated that it was involved in negotiations with the World Diamond Council (WDC), which represents the global diamond value chain, to make sure that businesses didn’t get disrupted by G7’s unilateral restrictions.

“We appreciate that G7 will remain engaged with us as diamond manufacturers, and GJEPC will strongly advocate for the interests of small and medium enterpises (SMEs) and marginal diamond units, recognizing their active contribution to this industry and the millions of livelihoods dependent on it,” the Indian industry body asserted.

It also noted that the Indian diamond industry had been making “representations” to the Indian government on the matter.

“We are confident that our leadership will ensure that the interests of Indian trade are not compromised in any way,” it said.

In June, Indian foreign minister S. Jaishankar, in a response to a question from Sputnik India, had stated that the G7 countries’ restrictions on Russian-origin diamonds and its fallout on the Indian industry was raised by Prime Minister Narendra Modi during his consultations with G7 leaders at the Hiroshima Summit this year.

What Does the G7 Proposed Ban Entail?

The G7 nations have said that they would introduce “import restrictions” on diamonds mined, processed or produced in Russia by 1 January, 2024, according to a statement after a virtual leaders’ meeting this week.

The nations have further vowed to implement “phased restrictions” on import of Russian-origin diamonds processed in third nations by 1 March, 2024.

“To further the effectiveness of these measures, those G7 members who are major importers of rough diamonds will establish a robust traceability-based verification and certification mechanism for rough diamonds within the G7 by September 1, 2024, and we will continue to consult with partners, including producing and manufacturing countries on its design and implementation,” the G7 stated.

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5 October 2023, 20:07