Russian DiamondImage Credit source: File Photo
Employment of one million people in India is at risk as G7 countries have imposed fresh sanctions on diamonds mined in Russia. The diamond business in India cuts and polishes 9 out of 10 diamonds available in the world and imports Russian diamonds from Alrosa, which accounts for 30% of global rough diamond production. Vipul Shah, chairman of the Gem and Jewelery Export Promotion Council (GJEPC), says that if this ban continues, 10 lakh workers in India will have to lose their jobs.
The G7 countries are imposing new sanctions against Russia in an attempt to further hinder its war effort in Ukraine. In the process, the diamond workers in Surat may face a fall in demand amid the global economic slowdown due to unavailability of rough diamonds from Russia and the ongoing large-scale war. Even after the supply of rough diamonds is less, the diamond industry is able to handle the situation, but problems can arise when the demand increases.
Vipul Shah said that there is no sure way to identify where a particular piece of diamond originated. The G7 tracing technology can be used to identify the origin and narrow down the movement of Russian diamonds in the world market. Work together to restrict the trade and use of diamonds mined, processed or produced in Russia in order to reduce the revenue extracted from diamond exports by Russia.
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GJEPC’s Shah said at present there is “no such technology” to trace the origin of diamonds. We now have the Kimberley Process certification. The Kimberley Process is a multilateral trading system established in 2003 to stem the flow of conflict diamonds. The core of this arrangement is the Kimberley Process Certification Scheme (KPCS) under which states enforce safeguards on rough diamond shipments.