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Diamond certification under G7 rules lead to shadow market — Russian Finance Ministry

According to the statement, growing financial expenses and time costs will reduce the profit of the 'diamond pipeline' middle segment almost to zero

MOSCOW, November 7. /TASS/. A diamond certification mechanism Group of Seven countries are pushing will lead to a large shadow market emerging and will undermine the transparency process achieved during functioning of the Kimberley Process Certification Scheme, Russian Deputy Finance Minister Alexey Moiseev said on the verge of the plenary session of the Kimberley Process.

"Growing financial expenses and time costs will reduce the profit of the 'diamond pipeline' middle segment almost to zero but will not lead to a rise in cut diamond prices in the long run," the official said.

"On the contrary, additional encumbrances will lead to a large shadow market emerging along the entire chain of supply, undermine the legal trade, the transparency mechanism achieved with difficulties during the functioning period of the Kimberley Process Certification Scheme and established self-regulation mechanisms in the industry," he noted, adding that gross profits of the natural diamonds segment will fall to record low levels.