MOSCOW, September 16. /TASS/. It will be quite difficult to exclude Russian diamonds from the global industry, Boris Krasnozhenov, head of the securities markets analytics department at Alfa Bank, told TASS. The relevant sanctions from the EU and G7 countries will require resources to develop a system for global tracking of the circulation of precious stones, and the ways of its implementation are in question, he explained.
Alrosa has a share of about 30% in the global diamond market, and more than 90% of diamonds are cut in India, so "it is quite difficult to imagine the exclusion of Russian diamonds from the global industry," Krasnozhenov believes.
After cutting in India, the stones are mixed and the diamond products receive Indian certificates. In this case, it is now "virtually impossible" to trace the origin of each diamond from the mine to the diamond in the piece of jewelry, the expert noted.
"This requires a system for global tracking of diamond turnover, the creation of which will require significant resources. Implementation methods, if developed, are also a big question. In the absence of such a system, transactions with Russian diamonds will simply move to centers outside the EU," Krasnozhenov believes.
Earlier, Reuters reported citing a Belgian government representative that the G7 countries are expected to announce a ban on Russian diamond supplies within the next two to three weeks, with the restrictions coming into force in January 2024. Belgium has proposed a plan to track raw gemstones and their cutting.
The New York Times reported that the G7 countries, as well as EU states, intend to completely ban the purchase of diamonds from Russia from January 2024.