G7 to discuss trade in Russian-origin diamonds, gold and other metals

Tightening restrictions on trade in Russian-origin diamonds, gold and other metals is expected to feature prominently in discussions amongst leaders of the Group of Seven (G7) nations when they contemplate further sanctions on Moscow at a summit this week.

Other topics up for discussion include measures targeting sanctions evasion involving third countries dealing in Russian exports, trade in goods to support Moscow’s military, and an automatic ban on all exports to Russia unless they are on a list of approved items.

Diamonds, copper, aluminium and nickel

Reports of tighter restrictions on trade with Russia have been circulating for several days, with the British prime minister, Rishi Sunak, leading on Friday morning what is expected to be a series of similar announcements of tougher measures against Moscow during the G7 summit in Hiroshima this week.

 He told the BBC that Russian-origin diamonds, as well as copper, aluminium and nickel imports into the UK will be blocked, under legislation to be introduced later this year.

 European diamond concerns

Measures against trade in Russian-origin diamonds is more contentious in the EU, with Belgium – home to the world’s biggest diamond trading hub in Antwerp –rejecting a Polish proposal to impose fresh sanctions on Russia for waging war against Ukraine, including restrictions on oil and diamond imports into Europe.

The Antwerp World Diamond Centre has expressed concerns that sanctions would reduce its market share in international diamond markets by some 30 per cent, with that share transferring to other diamond trading hubs such as those in the UAE and India.

Automatic export ban

US officials meanwhile have told Reuters that they expect that G7 members will agree to adjust their approach to sanctions so that, at least for certain categories of goods, all exports are automatically banned unless they are on a list of approved items.

Washington has previously pushed G7 allies to reverse the group’s sanctions approach, which currently allows all goods to be sold to Russia unless they are explicitly blacklisted.



Categories: Trade Based Financial crimes News

%d bloggers like this: