De Beers Group has expressed strong support for the G7’s planned penalties on Russian diamonds, emphasizing the need for a longer timescale to guarantee effective implementation and industry adaption.
De Beers proposes that import restrictions on polished diamonds weighing 0.5 carat or more commence as scheduled on September 1, 2024. However, the corporation pushes for a 12-month extension of the’sunrise period,’ stretching the complete implementation date to September 2025. This postponement, De Beers claims, is critical for giving the diamond sector enough time to conform to the new regulatory standards without causing severe market disruptions.
The company emphasizes that for the sanctions to be successful, they must be practical, industry-wide, and legally binding. The extended schedule is meant to provide stakeholders, including certification organizations and diamond producers, enough time to execute the necessary modifications smoothly.
De Beers also emphasizes the necessity of certifying diamonds as close to their source as feasible in order to maximize provenance assurance. The business proposes that producer countries with globally recognized standards, such as Botswana, Canada, Namibia, South Africa, and Angola, be given the authority to certify their diamonds for commerce with the G7, in addition to Belgium’s established position in this process.
To improve the Kimberley Process, the only government-backed certification system for diamond origins, De Beers suggests digitizing certificates and stating the countries of origin rather than using’mixed origin’ labels. These enhancements would provide better assurance about diamond origins.
De Beers also intends to use its blockchain technology, Tracr, to facilitate digital traceability. By September 2024, the company intends to register all of its gem-quality raw diamonds weighing 1 carat or more (equal to 0.5 carat polished) on Tracr. To encourage widespread industry adoption and retain the platform’s independence, De Beers is willing to offer Tracr at a cost to industry participants and government authorities while reducing its ownership position.
De Beers endorses a sensible method, such as the one advocated by the United Kingdom, for managing existing and historic diamond stocks. Furthermore, to facilitate the transportation of diamonds into and around the G7, De Beers suggests that G7 nations recognize the import certifications and rules of all other members.