De Beers Group has articulated its stance on the import restrictions targeting Russian diamonds, responding to inquiries from G7 governments.
In a seven-point statement, De Beers expressed its full support for the G7 sanctions on Russian diamonds, emphasizing the need for the measures to be practical, industry-wide, and enforceable.
The company addressed various issues including timing, certification, and product movement:
Implementation Timeline: De Beers suggests extending the ‘sunrise period’ for new certification requirements by 12 months to September 2024, allowing the industry to adjust. Import restrictions on polished diamonds of 0.5 carats and above could start as planned on 1 September 2024.
Certification at Source: To ensure diamond provenance, De Beers recommends certification as close to the source as possible. It acknowledges Belgium’s leadership role and urges producer countries like Botswana, Canada, Namibia, South Africa, and Angola to certify their diamonds for G7 trade, given their high standards.
Support for Producer Countries: De Beers advocates for a carve-out for rough diamonds cut and polished at the source, highlighting the diamond industry’s role in supporting millions of jobs and generating essential revenue for producer countries.
Kimberley Process Improvements: The Kimberley Process (KP) certificates, currently the only government-backed mechanism for certifying diamond origins, should be enhanced for greater assurance. De Beers calls for listing countries of origin on certificates and digitizing KP certificates.
Traceability with Tracr: By September 2024, De Beers plans to upload all its gem-quality rough diamonds of 1 carat and above onto Tracr, its blockchain traceability platform. The company is open to offering Tracr at cost to industry participants and government authorities, and reducing its ownership to ensure the platform’s independence.
Managing Existing Stock: De Beers supports a practical approach, similar to that proposed by the UK, to manage existing diamond stocks.
G7 Collaboration: To facilitate diamond movement, De Beers proposes mutual recognition of import certifications among G7 members.
De Beers reiterated its commitment to collaborating with the G7 to ensure the effective implementation of these measures.
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