Search
Close this search box.
World Federation Of Diamond Bourses

The WFDB and the G7 Sanctions

Dear Friends,

On February 24, 2023, the G7 Countries (USA, Canada, Germany, France, Italy, UK & Japan – along with the EU) made a statement regarding restrictive measures on Russian Diamonds. They stated that they would work closely to engage key partners in the diamond industry.

This was followed up by another statement on May 19, 2023, saying that they would ‘engage with key partners with the aim of ensuring effective implementation of future restrictive measures, including through tracing technologies.’

On December 6, 2023, similar statements were released by all the G7 nations including the EU. 

‘We will introduce import restrictions on non-industrial diamonds, mined, processed, or produced in Russia, by January 1, 2024, followed by further phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024. To further the effectiveness of these measures, those G7 members who are major importers of rough diamonds will establish a robust traceability-based verification and certification mechanism for rough diamonds within the G7 by September 1, 2024, and we will continue to consult with partners, including producing and manufacturing countries on its design and implementation.

We will continue consultations among G7 members and with other partners including producing countries as well as manufacturing countries for comprehensive controls for diamonds produced and processed in third countries on measures for traceability.’ 

Only the EU have published their plans, which call on all non-Russian diamonds to be routed via Antwerp. It seems that the rest of the G7 countries will follow suit. There are many problems with this proposed solution. While we support the aim of the G7, the solution of funnelling all diamonds through one centre can only cause harm to the diamond trade.

Since the first declaration we, at the WFDB, have worked steadily alongside the WDC to try to find a solution that would satisfy the aims of the G7, but still allow our trade to function efficiently, without undue costs both in time and expense. Meetings were held between the trade and the G7 technical team, but our proposed solutions fell on deaf ears.

Despite our best efforts, the G7 seems determined to implement a system that will harm the flow of rough diamonds from African countries and other non-Russian sources. The proposed G7 solution will bring significantly increased costs to manufacturers and traders and will make non-Russian natural diamonds more expensive and less competitive, at a time when the industry is facing a multitude of challenges.

But we have not given up. We are continuing to work on a proposal that will hopefully unite the industry, which we will present to the G7 team, in the hopes that the industry’s needs will be taken into account.

We will continue to update you about developments concerning the G7 sanctions.

Sincerely,

Yoram Dvash
President
World Federation of Diamond Bourses 

Read More : President's Letters