G7 move rattles diamond sector

The Group of 7 nations’ plan to ban imports of polished diamonds made from Russian rough stones from March as part of measures against the country’s invasion on Ukraine has left Indian diamantaires on shaky ground.

- Ram Sahgal

The ban is expected to have major repercussions for Indian exports of diamonds, with the US being India’s biggest market. The US accounted for a provisional 36% share of total diamond exports of $22.04 billion from India in FY23, ahead of Hong Kong at 25.16%. Japan accounted for a mere 1.18% of the exports from India, worth $260 million.

The G7 also plans to establish a traceability-based verification effective September. The intergovernmental forum includes the US, the UK, Canada, France, Germany, Italy, and Japan.

"Russia is no longer able to weaponize energy against us...," the G7 Leaders forum said in a statement after a virtual meeting on 6 December.