Several international trade associations have published an open letter calling for the G7 to consider the broader impact of incoming sanctions against the Russian diamond industry.
The letter was published by the World Federation of Diamond Bourses (WFDB) and supported by the World Diamond Council (WDC), India’s Gem and Jewellery Export Promotion Council (GJEPC) and the International Diamond Manufacturers Association (IDMA).
The proposed European Union and G7 sanctions would have all diamonds sent to Antwerp for screening and certification, which the letter argues would damage the remainder of the industry.
The letter states that dealers would face additional costs and time disadvantages due to the requirement to send the diamonds to Antwerp. It also suggests that Russian diamonds would become a more attractive option if dealers were forced to raise prices due to these new requirements.
“We stand united against forcing all participants who wish to sell their polished diamonds in the G7 markets to send their rough to Belgium first,” the letter reads.
“As diamond experts, we know that this would add no value to the objectives of the G7 member states and would result in a major restriction for all non-Russian diamonds, with terrible impacts on the industry.”
It continues: “It would also force a functioning trans-global trade into one centralised point that would create bottlenecks in supply and give unwarranted power and advantage to one participant at the detriment of all others.”
In February, De Beers CEO Al Cook expressed concern about the ‘unintended consequences’ of incoming sanctions against the Russian diamond industry.
The letter also drew attention to a need for more information on the requirements associated with preexisting stock of rough and polished stones, secondhand diamonds and jewellery, and finished jewellery or watches.
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