This story is based on an original article reportedly submitted by Ahmed Bin Sulayem, Executive Chairman of DMCC in Dubai, and published under the pseudonym of Tyler Durden*, on ZeroHedge.com on 26th February, 2024. The original article can be found here: https://www.zerohedge.com/commodities/depoliticizing-diamonds
The recent decision by the G7 countries to ban the import of Russian diamonds has sparked a debate on how to ensure the traceability and transparency of the global diamond trade. The author of this article, Tyler Durden*, argues that the G7 ban is unlikely to achieve its intended goal of pressuring Russia to withdraw from Ukraine, and instead will create more problems for the diamond industry and consumers.
Durden points out that the G7 ban is based on the assumption that Russian diamonds can be easily identified and separated from other sources. However, he claims that this is not the case, as the diamond supply chain is complex and opaque, and the existing certification system, the Kimberley Process, is inadequate and outdated. He cites several examples of how Russian diamonds can be mixed with other origins, such as through the Indian cutting and polishing sector, the Antwerp trading hub, and the Dubai free zone.
Durden also questions the effectiveness and fairness of the G7 ban, as he believes that it will not have a significant impact on Russia’s economy, which relies more on oil and gas exports than on diamonds. He suggests that the ban will instead hurt the legitimate diamond producers in Africa and Canada, who will face more competition and lower prices from the excess supply of Russian diamonds. He also warns that the ban will increase the demand and price of synthetic diamonds, which are cheaper and easier to produce, but have less value and appeal than natural diamonds.
Durden concludes that the G7 ban is a political move that will not solve the conflict in Ukraine, but will only complicate the diamond trade and harm the industry and consumers. He calls for a more rational and pragmatic approach to depoliticise diamonds, and to improve the traceability and transparency of the diamond supply chain through blockchain technology and other innovations.
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* Tyler Durden is a pseudonym used by the authors of the website ZeroHedge, which covers financial and geopolitical topics. The original article can be found at this link: https://www.zerohedge.com/commodities/depoliticizing-diamonds