G7’s decision to put fresh sanctions on Russian diamonds has reportedly put the jobs of around one million diamond workers in Surat at risk.
According to an Economic Times report, nine out of 10 diamonds of the world are cut and polished in India. Indian traders import Russian diamonds from Alrosa, a diamond mining company. It reportedly accounts for 30 per cent of global rough diamond output.
G7 countries have been imposing sanctions on Russia after it invaded Ukraine last year.
The sanctions on Russian diamonds have come as a setback for Surat diamond workers already reeling under a fall in demand and global economic slowdown. Supply of rough diamonds has taken a hit due to the sanctions, affecting the work of diamond traders.
However, the report quoted Gem and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah saying that as the demand is less at present, the industry has been able to manage with less supplies.
The problem according to him will arise when the demand for diamonds increases.
After the recent G7 meeting held in Japan, the grouping said in a statement that it aims to target revenue Russia generates from diamond export.
“We will continue to work closely together to restrict trade in and use of diamonds mined, processed or produced in Russia and engage with key partners with the aim of ensuring effective implementation of future coordinated restrictive measures,” the grouping said.
To identify the origin and movement of Russian diamonds, G7 aims to improve traceability techiniques it has at the moment. However, the report quoted GJEPC chaiman saying that there is no technology that can trace origin of diamonds.
He pointed to the current mechanism of Kimberley Process which was established in 2003. Under the process, countries provide certificates on shipment of diamonds to classify them as “conflict-free”.