De Beers Group has announced its support for the G7 sanctions on Russian diamonds, emphasizing the need for practical, industry-wide, and enforceable measures.
The company has provided a detailed response to the requests from G7 governments, highlighting key areas for consideration.
Timing and Adaptation Period
The proposed import restrictions on Russian diamonds, specifically those of 0.5 carats and above, are set to be implemented on 1 September 2024. However, De Beers advocates for a 12-month extension of the ‘sunrise period’ to September 2025. This extension is intended to give the diamond industry adequate time to adapt to the new certification and import requirements.
Certification at Source
De Beers underscores the importance of certifying diamonds as close to their source as possible to ensure maximum assurance of provenance. While Belgium plays a key role in certification, producer countries such as Botswana, Canada, Namibia, South Africa, and Angola also have established standards. These countries should be able to certify their diamonds for trade with the G7.
Beneficiation and Economic Impact
De Beers notes the economic impact of the diamond industry, supporting millions of jobs and generating revenue for producer countries. The company endorses a carve-out for rough diamonds that are cut and polished at their source.
Enhancing the Kimberley Process
The Kimberley Process (KP) certificates are currently the only government-backed mechanism for certifying diamond origins. De Beers suggests several improvements to the KP to enhance its reliability, including:
- Certificates for diamond parcels should specify the countries of origin rather than listing them as ‘mixed origin’.
- The digitalisation of KP certificates should be pursued for better traceability.
By 1 September 2024, De Beers plans to have all its gem-quality rough diamonds of 1 carat and above uploaded onto Tracr, its blockchain-based traceability platform. De Beers is also open to offering Tracr at cost to industry participants and government authorities, and to reducing its ownership to ensure the platform’s independence.
Managing Existing Diamond Stock
De Beers supports a practical approach, such as that proposed by the U.K., to manage existing and old diamond stock. This includes measures to ensure that previously imported diamonds are effectively regulated under the new rules.
Mutual Recognition Among G7 Members
To facilitate the efficient movement of diamonds within the G7, De Beers proposes mutual recognition of import certifications and rules among all G7 member countries. This would streamline the import process and ensure consistent enforcement of the sanctions.
De Beers is engaging with the G7 to support the implementation of these measures and to assist the diamond industry’s transition under the new regulations.
