G7 Considers Limiting Russia’s Diamond Exports

The G7 countries apparently want to change their stance on sanctions against Russia

G7 Wants to Limit Export of Russian Diamonds

The G7 countries apparently want to change their stance on sanctions against Russia. Despite Russia’s attack against Ukraine, the international community has yet to impose any sanctions. Now, the group of the world’s largest democratic industrialised nations apparently wants to limit the multi-billion dollar export of raw diamonds from Russia. A corresponding declaration is to be adopted at the G7 summit in Hiroshima, Japan. Diplomats report the measures are another response to Russia’s aggression against Ukraine.

Limiting State Revenues from Diamond Sales

According to G7 sources, the aim is to reduce the revenues of the state from diamond sales by effective and coordinated measures. It is also intended to ensure that gems sold to countries like India and the United Arab Emirates remain recognisable as Russian diamonds. In the EU, the trade in Russian diamonds has already declined by about 80% through voluntary commitments.

Russia is the Largest Producer of Raw Diamonds

The diamond trade is an important economic sector and source of income for Russia. In the past year, state diamond producer Alrosa unveiled its figures. The company generated RUB 332 billion (around EUR 4 billion) in income. Russia is the world’s largest producer of raw diamonds. So far, the EU has not restricted the trade. One reason for this is the resistance from Belgium. The Flemish port city of Antwerp has been the centre of the diamond trade since the 16th century.

“You Cannot Replace Us”

The US, Canada and Great Britain have imposed sanctions against Alrosa. However, according to the outgoing Alrosa CEO Sergei Ivanov, the son of the former Defence Minister and close confidant of Kremlin chief Vladimir Putin, the business of the group has hardly been affected. The plan for 2022 has been exceeded, and Q1 2023 has gone well. Ivanov is optimistic that new sanctions will not take hold. “You cannot replace us,” he said in an interview with the newspaper Kommersant. At least 30% of the world’s diamond trade is owned by Alrosa. Alrosa has coped with previous restrictions, including purchases of Western mining equipment and banking services, by transitioning to other suppliers.

G7 Plans Unclear

Diplomats did not initially provide details on the new G7 plans. However, it is unclear how India will participate. According to Moscow, many diamonds are cut and processed in India, and India has yet to join the G7’s sanctions.

The G7 is an informal alliance of leading democratic industrialised nations, including Germany, France, Great Britain, Italy, Japan, Canada, and the United States, as well as the EU. The summit of heads of state and government begins tomorrow. The focus is on Russia’s aggression against Ukraine, as well as dealing with China and climate protection.