The Gems and Jewellery Export Promotion Council (GJEPC) has strongly protested against the G7’s decision to impose a ban on the non-industrial diamond imports from Russia.
The decision was taken after a virtual meeting on Wednesday last by G7 leaders including the US President Joe Biden. The ban will be in effect from January 1, 2024. Apart from that, a ban on Russian diamonds sold by third countries was also agreed upon and will be implemented from March 2024.
Commenting on the development, Vipul Shah, Chairman, Gem and Jewellery Export Promotion Council (GJEPC), said, “It is not surprising that the decision raises valid concerns for the Indian Gems and Jewellery trade. We had engaged with the G7 to discuss our reservations on the timelines announced for the implementation of restrictions. Recognizing the diversity of our industry, we believe there should be more flexibility in these timelines.”
Tracing and certification of diamonds’ done through G7 countries will be used to implement this ban. In the initial phase this ban will cover rough diamonds only. Though member countries discussed plans that covered polished gems also but a consensus could not be reached.
Shah further said, “We respect G7’s decision but we would like more details on how such decisions will be implemented. We have questions about what is meant by a major rough diamond importer in the G7 and the powers it will have in determining the compliance of Indian diamond exports to the G7.”
The G7 leadership has indicated that it will remain engaged with diamond manufacturers. “GJEPC will strongly advocate that when regulating the sanctions, the interests of SMEs and marginal diamond units should be kept in mind, recognizing their active contribution to this industry and the millions of livelihoods which are dependent on it. We will be discussing with WDC and aligning all stakeholders to ensure that their businesses are not disrupted,” Shah said.
He also added that the diamond association will also make representations to the Indian Government on the matter. It should be mentioned that Russia used to contribute around 30% in total rough diamond imports in India. Due to the sanctions in the aftermath of the Russia-Ukraine crisis, direct rough diamond import from Russia has decreased significantly. According to industry sources, most of the rough import from Russia is being done through round-tripping from third countries.