Diamonds “mined, processed or produced” in Russia will be banned from entering G7 countries from 1 January 2024. Stricter restrictions will come into force in March.
The Group of Seven Nations announced on Wednesday a ban on Russian diamonds. It also gave a timetable for the restrictions. They will be tightened gradually during 2024, but without details on how they will be implemented.
According to the announcement, the G7 will ban the import of non-industrial diamonds “mined, processed or produced” in Russia from 1 January 2024.
In the US, they ban the import of non-industrial Russian diamonds from 11 March 2022. Following an executive order by President Joe Biden.
Wednesday's announcement by the G7 broadens the ban. To Western countries that do not currently have a ban on diamond imports from Russia. These include the European Union.
The EU did not include diamonds in previous rounds of sanctions against Russia. This over objections from Belgium, which is a major diamond trading hub, Antwerp.
The G7 member states are: the United States, the United Kingdom, Japan, Italy, Germany, Canada, France and the United Kingdom. The EU is an unreported member.
On 1 March 2024, the ban on imports of Russian diamonds will come into force. Those that have been processed (cut and polished) in other countries, such as India. A measure intended to address the U.S. Customs and Border Protection's “substantial transformation” rule.
So, according to this rule, goods that are “substantially transformed” from their original state in another country become a product of the country in which the transformation took place. For example, a rough diamond is mined in Russia. But when it is transformed into a processed diamond in India, it is technically a product of India and not of Russia.
The substantial transformation allowed Russian diamonds to continue to enter the US. A route that the G7 states had intended to close. When earlier this year they announced plans to tighten restrictions on Russian diamonds.
Source: nationaljeweler.com
