India has urged the Group of Seven (G7) countries to delay an incoming ban on Russian diamonds because the rules to trace the origins of gems remain unclear.
Besides, the timeline to start restrictions on indirect imports from Russia in three-four months is impractical, as the rules on how the origin for a gem will be traced are not clear.
Russia is the world’s biggest producer of rough diamonds by volume. New restrictions on the trade of Russian gems are part of the bloc’s broader measures designed to limit Moscow’s revenues that aid and fund its invasion of Ukraine. India, home to 90% of the world’s diamond cutting and polishing industry, is critical to the implementation of the ban.
India has also expressed its reservations over G7’s new 'traceability-based verification and certification' system, which may require sharing of data about Indian businesses. As India mostly processes smaller Russian diamonds, the country expects minimal trade disruption. In any case, the proposed ban would impact the diamond supply chain, according to Indian diamond industry leaders.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
