Recently, the Group of Seven (G7) announced that it will ban the direct import of Russian diamonds from January 1, 2024, in order to strengthen sanctions against Moscow. The move sparked global attention, and the Kremlin responded by saying that Russian diamond mining companies were trying to hedge their risks.
According to AFP, the G7 said in its latest statement that "we will impose import restrictions on non-industrial diamonds mined, processed or produced in Russia starting January 1, 2024", and that "import restrictions will be imposed on Russian diamonds processed in third countries in further phases, with a target date of March 1, 2024," AFP reported. By early September, "a robust, traceability-based rough diamond verification and certification mechanism will be established within the G7," the statement added.
The sanctions are the latest in a series of sanctions imposed by the United States and Western countries on Russia. Previously, Western sanctions against Russia targeted financial institutions, technology imports and energy exports. The sanctions against Russian diamonds have been discussed for a long time, so this is not news for the Kremlin. Peskov responded that new sanctions have been discussed for several months and that Russian diamond mining companies are aware of all the risks they face and are naturally trying to hedge them.
At the same time, Russia's Vladimir Putin recently made a lightning visit to the United Arab Emirates and Saudi Arabia, where he held talks with the leaders of the two countries. Saudi Arabia and the UAE are both important partners of Russia and have remained neutral in the Russia-Ukraine conflict, refusing to adopt Western-led sanctions against Russia. Putin's visit is aimed at strengthening economic cooperation with the two countries and discussing issues such as oil policy, the Russia-Ukraine conflict and the Palestinian-Israeli conflict.
However, despite the G7 announced sanctions against Russian diamonds, the global diamond market is still tight. Due to the impact of the new crown epidemic, the global ** chain has been severely impacted, resulting in the production and ** of many countries being hindered. Coupled with the impact of the Russia-Ukraine conflict, the global market demand for diamonds has also shown a downward trend. As a result, G7 sanctions could further exacerbate the tension in global markets.
Despite the pressure of sanctions, Russian diamond mining companies have not given up their efforts. They are working to hedge their risks in order to remain competitive in the global diamond market. At the same time, Russia** is also taking steps to support the development of its diamond industry to mitigate the impact of sanctions.
In short, the G7's sanctions on Russian diamonds have attracted global attention. It remains to be seen how this action will affect the global diamond market. What is certain, however, is that this sanction will have some impact on Russia's diamond industry.