This week, G7 countries are planning to discuss four plans to ban Russian diamond imports that are scheduled to take effect from January 1, 2024.
The proposals range from light-touch self-regulation to strict import measures, laying bare differences that explain why a ban has been so difficult to agree for more than a year, according to documents cited by Reuters.
The four proposals were prepared by Belgium, India, a French jewellery industry group and the World Diamond Council and will be discussed at a technical meeting of Group of Seven representatives.
The main task of the meeting will be to agree in a legally sound way on a definition of traceability of diamonds, to be able to determine where the stones come from.
"Part of the reason we are stalled is that ... it's an indirect ban - it's on Russian diamonds coming (into G7) from outside of Russia. It's more complicated," one of the sources familiar with discussions said to Reuters.
Agreement is tough because the details of a G7 ban could boost or deteriorate business conditions for some of the world's major diamond centres in Belgium, India, or the United States. The main differences between the proposals include where the diamonds enter G7 markets, how they would be verified if they originate from Russia, and what the weight thresholds would be and consequences there would be for breaking the rules.
India and Belgium want the entry point to be their own diamond centres in Mumbai and the Antwerp respectively, France's group wants multiple entry points to prevent bottlenecks and WDC wants a more self-regulating system. The weight threshold for the gems could be 1 carat or more for polished stones.
"There are intense G7 technical calls on the traceability mechanism taking place now. We hope there can be a public announcement soon," a diplomat with knowledge of the matter said.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
