US May Drop Ban on Russian Diamonds

The United States is reconsidering its embargo on Russian diamonds after major opposition from the industry and countries that play a major role in the global diamond trade. Reuters.

Western countries have clamped down on the trade in Russian diamonds because of the war in Ukraine, and the European Union last December imposed new sanctions banning diamonds altogether. This is a big step up from the first bans that allowed the trade of Russian diamonds mined in other countries.

Diamond dealers must now prove that the diamonds they sell are not of Russian origin. From September, diamond dealers in the European Union must sell their diamonds through the Belgian certification system.

With those measures The Russian war chest will be attacked, considering that the country is one of the world’s largest diamond producers. But the United States, one of the world’s biggest buyers of diamonds, may avoid implementing the latest restrictions, Reuters reported.

Multiple sources say the US is no longer working with the G7 to enforce the diamond embargo and certify that diamonds are not of Russian origin. According to a source familiar with the matter, US representatives are in discussions about it, but do not intervene.

A White House spokeswoman told Reuters that the United States continues to work with the G7 and that it has not changed its mind about introducing a ban on Russian diamonds, but there are several obstacles to introducing the latest trade restrictions.

“We want to make sure we find the right balance between attacking Russia and making sure everything can actually be implemented,” the spokesman said.

The government has drawn criticism from companies and countries that play a major role in the diamond trade. Several African countries and diamond miners from India have complained about the recent trade restrictions, warning that the ban was not well thought out and could cause significant problems for the sector. The Diamond prices They warn that if the inflow decreases, it will increase.

Diamond merchant Signet CEO Virginia Droz has urged the US government not to agree to “the G7’s Belgian solution,” according to a letter seen by Reuters.

South African diamond company De Beers says it supports a ban on Russian diamonds, but wants diamonds certified at the place of manufacture instead of Belgium.

“It is highly likely that Russian diamonds will end up in the regular supply chain,” de Beers told Reuters.

Read more: High oil revenues give Putin financial leverage to continue war in Ukraine

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