The move by the G-7 countries to ban exports of rough diamonds by Russia would have no impact on the Indian gems and jewellery sector because of its positioning in the value chain and exemptions available in the curbs announced, a senior official said Friday.
The Group of & which brings together the most advanced economies of US, UK, France, Germany, Japan, Canada and the European Union announced the ban on Russian diamonds on December 7 and to introduce a robust traceability-based verification and certification mechanism for rough diamonds within the G7 by Sept 1.
From January 1 all cut and polished diamonds of over 1 carat would not be entering G-& countries. By March this limit will be brought down to 0.5 carat.
The official said that the Russian diamonds are smaller diamonds and rough diamonds that yield a stone of 0.5 carat could be more than a carat. Moreover India does not buy diamonds directly from producing countries but from mixing centres in Antwerp, UAE, Israel and other places so the stones would be flowing through G-7 nodes so the ban does not make a difference to us, he added.
Antwerp has the world’s main diamond hub and most of the world’s rough stones transit through the city even though they are now mostly cut in India.
“We are in touch with the technical team of G-7, on behalf of G7 the EU has taken the lead. India is a very important stakeholder and our major concerns have been addressed,” the official said.
India has 90% share in processing of rough diamonds.globally. Another official said that G-7 agreed not to subject polished diamonds from India to additional scrutiny once they have been part of the G-7’s tracking system. “It is a respite to our diamond industry. They will not be put through double checks.”
“We should be able to see that without disturbing the sanctions on Russian diamonds we should be able to export our processed diamonds,” he added.
Gems and jewellery is an important sector for India and exports in April-November stood at $ 21.4 billion.