America rethinking Russian diamond prohibition
Date
5/19/2024 8:15:45 AM
(MENAFN) The United States is reportedly reconsidering its stance on the ban on Russian diamonds, which was implemented by the European Union and G7 nations last year. According to sources cited by Reuters on Friday, the United States is re-evaluating the ban following numerous complaints from industry stakeholders.
The ban on Russian diamonds, a measure introduced as part of the West's sanctions against Russia due to the conflict in Ukraine, initially came into effect in January. It was followed by phased-in restrictions on indirect imports from March 1. Additionally, Western countries are planning to introduce a tracking mechanism later this year to inspect unprocessed stones and determine their origin, aiming to prevent violations of sanctions. Antwerp, Belgium's diamond trading hub, is expected to be the first location where stones will undergo testing and certification.
However, doubts have arisen in Washington regarding the necessity of the tracking mechanism. Sources revealed that discussions within the G7 regarding the enforcement of tracing have encountered obstacles, particularly due to opposition from African diamond miners, Indian polishers, and United States jewelers, who have voiced criticism against the measure. An unnamed official mentioned that Washington does not see a viable mechanism that adequately addresses the concerns of all affected parties. It was indicated that the G7 is unlikely to enforce the measure by the previously set deadline of September, with United States authorities reportedly ceasing participation in discussions on the initiative.
Both the United States State Department and Italy, the current holder of the G7 presidency, declined to provide comments on the report, as per Reuters. Last year, the African Diamond Producers Association, representing 19 producers responsible for approximately 60 percent of global output, expressed concerns about the tracking mechanism, warning that it could lead to supply chain disruptions and additional burdens and costs for mining nations.
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