De Beers Group has announced its strong support for the G7’s proposed sanctions on Russian diamonds, while stressing the need for an extended timeline to ensure effective implementation and industry adaptation.
De Beers proposes that the import restrictions on polished diamonds of 0.5 carat and above begin as scheduled on 1st September, 2024. However, the company advocates for a 12-month extension of the ‘sunrise period,’ pushing the full implementation to September 2025. This extension, De Beers argues, is crucial for allowing the diamond industry adequate time to adjust to the new regulatory requirements without causing significant market disruptions.
The company underscores that for the sanctions to be effective, they must be practical, industry-wide, and enforceable. The extended timeline is intended to provide stakeholders, including certification bodies and diamond producers, sufficient time to implement the necessary changes seamlessly.
De Beers also stresses the importance of certifying diamonds as close to their source as possible to ensure maximum provenance assurance. The company suggests that producer countries with globally respected standards, such as Botswana, Canada, Namibia, South Africa, and Angola, should be empowered to certify their diamonds for trade with the G7, in addition to Belgium’s established role in this process.
In enhancing the Kimberley Process, the only government-backed certification system for diamond origins, De Beers proposes digitalising certificates and specifying the countries of origin rather than using ‘mixed origin’ labels. These improvements would provide greater assurance of diamond provenance.
Moreover, De Beers plans to leverage digital traceability through its blockchain platform, Tracr. By September 2024, the company aims to register all its gem-quality rough diamonds of 1 carat and above (equivalent to 0.5 carat polished) on Tracr. To promote widespread industry adoption and maintain the platform’s independence, De Beers is prepared to offer Tracr at cost to industry participants and government authorities and reduce its ownership stake.
De Beers supports a practical approach, such as that proposed by the U.K., to manage existing and old diamond stock. Additionally, 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.