Indian diamond traders explore non-US markets

economictimes.indiatimes.com:

India starting January as it believes those may have originated from the mines operated by Alrosa of Russia, a country which is under US sanctions. Trade sources said the restrictions are expected to be announced in September.Vipul Shah, chairman of the Gem & Jewellery Export Promotion Council, said: «Discussions with G7 countries, the US, and our government are currently underway. Meanwhile, we are preparing ourselves to enter newer markets.

The demand has already slowed down from the US, our major buyer. The industry has to survive and therefore, we have to penetrate other countries.» Recession is not the only factor that has brought down exports of diamonds to the US from India, which is said to cut and polish nine out of every 10 diamonds available globally. «The fear of sanctions and absence of clarity are impacting the trade,» said a leading diamond exporter, who did not want to be named.India's gross exports of cut & polished diamonds in June declined 31.5% to $1.38 billion from about $2.02 billion a year earlier.

«This trend is unlikely to change in July too,» Shah added. Incidentally, G7 leaders at their Hiroshima meet last May had pledged to restrict trade in Russian diamonds — worth $4-5 billion a year — as an effort to further obstruct Moscow's war against Ukraine. To identify the origin and movement of Russian diamonds, G7 aims to improve traceability techniques it has at the moment.

However, there is no technology that can trace the origin of diamonds. The only available mechanism is the Kimberley Process, which was established in 2003. Under this, countries provide certificates on shipment of diamonds to classify them as «conflict-free».