De Beers welcomes G7 sanctions on Russian diamonds
By 1 September 2024, De Beers aims to upload all its gem-quality rough diamonds of 1 carat and above (equivalent to 0.5 carat polished) onto Tracr, De Beers’ traceability blockchain
De Beers has stated that it fully supports the intent of the G7 sanctions on Russian diamonds.
For these to be effective, the group said that the sanctions must be “practical, industry-wide and enforceable”.
In response to requests from G7 governments, De Beers offers the following perspectives.
Timing: Import restrictions could be extended to 0.5 carat and above polished diamonds on 1 September 2024 as planned, with current certification requirements. But the ‘sunrise period’ should be extended for 12 months to September to give the industry time to adapt to new requirements.
Certification: Diamonds should be certified as close to the source as possible for maximum assurance on provenance. Belgium has a leadership role to play, but producer countries like Botswana, Canada, Namibia, South Africa and Angola have globally respected standards and must be able to certify their own diamonds for trade with the G7.
Beneficiation: The diamond industry supports millions of jobs and provides essential revenue for producer countries. De Beers fully supports a carve out for rough diamonds cut and polished at source.
The Kimberley Process (KP): KP certificates are the only government-backed mechanism for certifying the origin of diamonds. De Beers believes that these certificates should be a requirement for providing assurance of diamond provenance. KP processes must be improved further to provide additional assurance, including certificates for parcels of diamonds should list countries of origin rather than ‘mixed origin’ and KP certificates should be digitalised.
Digital traceability: This can provide additional assurance on provenance for gem-quality diamonds. By 1 September 2024, De Beers aims to upload all its gem-quality rough diamonds of 1 carat and above (equivalent to 0.5 carat polished) onto Tracr, De Beers’ traceability blockchain. De Beers is willing to offer Tracr at cost to industry participants and government authorities, and to reduce its ownership level to ensure Tracer’s independence.
Grandfathering: De Beers supports a practical approach, such as that proposed by the U.K., to manage existing and old diamond stock.
Mutual recognition: To allow efficient movement of diamonds into and around the G7, De Beers proposes that members of the G7 accept the import certifications and rules of all other members.
De Beers said: “We remain willing and available to engage with the G7 to ensure the success of these measures.”
