World Federation of Diamond Bourses (WFDB) president Yoram Dvash has published an open letter on the state of adoption of the diamond compliance system being imposed by the G7 countries to curb the trade in sanctioned Russian diamonds.
“The G7 system of enforcing the sanctions against Russian diamonds is still causing dismay and uncertainty throughout the diamond world,” Dvash notes.
“However, it seems clear that momentum is building in the diamond world to seek changes in the system, to minimize disruption to the industry.”
According to the letter, industry bodies such as WFDB, WDC, GJEPC and IDMA issued an industry call to action asking the G7 governments to hear their concerns over their Russian diamond sanctions system, but received no official reply, although there are indications that the proposal has been well received.
Many industry players are concerned that the single entry point of diamond products that was established in Antwerp was ill-equipped to handle the huge amounts of goods, which led to differences of opinion within the Antwerp diamond industry. Ari Epstein, Antwerp World Diamond Centre (AWDC) CEO, being a leading proponent of the one-node system, stepped down last month.
“It seems clear that the Antwerp diamond industry is not happy over the controversy and the potential damage of the one-node system,” Dvash writes.
India has called for its diamond screening center to comply with the new G7 sanctions but argued that it would incur additional costs for the low-marginal diamond manufacturing in the country. African diamond mining countries asked the G7 to reconsider their decision due to possible logistical challenges and a threat to local beneficiation.
“I am confident that the drive to alter the G7 Russian diamond sanctions scheme will gain increased momentum as the weeks go on,” Dvash concluded.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
