According to Russian deputy finance minister Alexey Moiseyev, the global diamond market is currently experiencing another crisis of the 21st century, which, however, is particularly long-lasting.
“It is no exaggeration to say that the global diamond industry is currently undergoing the most serious test of strength,” the official said in his message published ahead of the 2024 Kimberley Process (KP) Plenary Meeting.
Meanwhile, according to him, the industry is showing cautious signs of stabilization. Moiseyev believes that the current crisis can be overcome through large-scale joint efforts in diamond category marketing.
However, Moiseyev fears that the introduction of sanctions against Russian diamonds could jeopardize the industry's efforts to restore the supply and demand balance.
“The G7 restrictions on rough and polished diamonds could completely destroy decades-old supply chains, the achievements of category marketing of natural diamonds and the very business model of the diamond sector by introducing segregation requirements,” he said, adding that the new traceability requirements bring additional costs at all stages of the diamond pipeline.
Moiseyev warns against replacing the KP as the only universal mechanism for regulating international diamond trade with “another technologically unrealistic and costly process for producers,” which would ultimately push diamond mining and trade into a “grey zone.”
Theodor Lisovoy, Managing Editor, Rough&Polished
