The United States is reconsidering the strictest aspects of a G7-imposed ban on Russian diamonds, following resistance from African countries, Indian gem polishers, and New York jewelers, according to seven sources cited by Reuters.
The sanctions package, agreed upon in December and including an EU-wide ban, represents a major shift in the diamond industry.
Two sources familiar with the negotiations stated that the U.S. has largely disengaged from G7 working groups on stringent controls, with one describing their involvement as “present but not engaged.”
While the U.S. State Department declined to comment, a senior administration official, speaking anonymously, stated that Washington’s position remains unchanged and that the U.S. continues to work with the G7.
“We want to ensure we find the right balance between harming Russia and making sure everything is implementable,” the official said.
The G7 sanctions aim to cut off another revenue stream for Russia’s war effort in Ukraine. Although Russian state mining company Alrosa reported $3.5 billion in 2023 revenues, this is a small fraction of Moscow’s profits from oil and gas.
Since March, G7 importers must certify that diamonds do not originate from Russia, the world’s largest producer of rough diamonds. Direct imports of Russian gems were banned in January.
Starting in September, the EU ban will require diamonds of 0.5 carats or larger to pass through Antwerp, Belgium’s historic diamond hub, for traceability certification using blockchain technology.
