The European Union is “confident” that a plan for sanctioning Russian diamonds will be put in place at the upcoming G7 meeting in Japan, according to a senior EU official.
At a briefing with journalists Thursday, the senior EU official stressed that the “main focus” of the G7’s sanctions is “circumvention.”
“What we have been pushing to (do), which we think would be important in the coming months, is diamonds, and you can expect this to be mentioned in the G7 communique,” the official said.
Brussels does not yet have a formal proposal for how these sanctions would take effect, the official said, stressing that the bloc needs to “engage with partners first” rather than do it alone. The official called the “traceability of diamonds” a “crucial” matter, reiterating the roles of different actors in the chain of producing diamonds.
“It’s of huge value for the industry what comes from Russia, so we believe we need to limit exports from Russia in the sector and it will be important to be able to implement,” the official said.
A “diplomatic dance”: India, named as a “crucial actor” in the diamond industry, will need to be considered as a significant player in the G7’s prospective sanctions, according to the official.
The official spoke of a “diplomatic dance” with regard to how the G7 approaches the issue of sanctions with different countries. Those in the EU are more likely to be supportive of Ukraine, but the G7 will need to “to be careful” when discussing sanctions with other nations, the official said.
The EU would like to engage carefully with countries such as India, where the diamond industry is “quite important”, the official added, not just ” in terms of numbers, but in terms of politics, symbolism.”
US tightening rules on Russian diamonds: One G7 nation, the United States, has already placed export restrictions on Russian diamonds. Last March, President Joe Biden issued an executive order which included a prohibition on non-industrial Russian diamonds. The ban directly targeted Alrosa, identified by the US government as the world’s largest diamond mining company, responsible for 90% of Russia’s diamond mining capacity and accounting for 28% of global diamond output.
“These sanctions will continue to apply pressure to key entities that enable and fund Russia’s unprovoked war against Ukraine,” said Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence in a statement released in April.