G7 plan to restrict exports of rough diamonds from Moscow poses a major threat to India's polishing industry

Restrictions on exports of Russian diamonds that the G7 countries have been considering for over a year pose a threat to India's polishing industry, according to an Economic Times report.
A potential embargo is weighing heavily on Surat's more than 4,000 diamond processing companies, which employ at least a million craftsmen, polishers, and traders, as per industry experts. The town of Surat imports at least 35% of its gems from Russia's mining giant ALROSA, which accounts for 30% of global rough diamond output.
Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council said: "If the sanctions continue, then there will be a lot of uncertainty in the employment of one million workers."
Russia's diamond trade has so far avoided sanctions due to resistance from major importers from Belgium as its government has repeatedly blocked the EU's embargo plans, warning that the move could cost thousands of jobs.
At the recent G7 summit in Japan, leaders pledged to restrict trade in "diamonds mined, processed or produced in Russia" in an effort to further cut Moscow's revenues. In a joint statement, the group of wealthy nations said it would curb the $4.5 bn Russian diamond trade, including by using high-tech methods of tracing.
"We are awaiting a proper understanding of how the sanctions will be executed, since there is no way to trace the origin of rough gems right now," Vipul Shah said.
Meanwhile, supplies of rough diamonds have been shrinking since Western sanctions disconnected Russia from the SWIFT international financial processing network last year.
Indian exports of cut and polished diamonds have also slumped as US and EU firms shunned buying diamonds sourced from Russia.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished