G7 plan to ban Russian diamonds to further dim industry sparkle

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G7 plan to ban Russian diamonds to further dim industry sparkle
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G7 plan to ban Russian diamonds to further dim industry sparkle

© Reuters. FILE PHOTO: A view shows polished colorless and yellow diamonds produced at"Diamonds of ALROSA" factory in Moscow, Russia April 30, 2021. REUTERS/Tatyana Makeyeva/File PhotoLONDON/PARIS - The global diamond sector is scrambling to get ahead of an upcoming G7 ban on Russian gems, with consumers and producers battling to manage ever more complex supply chains against a backdrop of sluggish demand.

Tiffany, part of French luxury group LVMH, said in March last year it had stopped sourcing rough diamonds from Russia. With various proposals under consideration, the industry is currently debating how a diamond's country of origin should be checked, where it should be done, and what sizes of stones, rough or polished, should be part of the rule.

Demand for diamond jewellery is already suffering in the U.S., home to 55% of global demand, due to high interest rates, a muted post-pandemic recovery in China, and competition from lab-grown diamonds.

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