Government officials in Botswana have expressed concerns over the potential negative impact of G7 import restrictions targeting Russian diamonds, warning that these measures could undermine the progress made by the country’s diamond trade in recent years.
In an interview with Rapaport News, Lefoko Moagi, Botswana’s minister of mineral resources, green technology, and energy security, highlighted the logistical challenges posed by the proposal to establish a single-node location for all diamonds to ensure G7 compliance. Moagi emphasized that such a system would significantly delay the processing of Botswana’s diamonds and hinder its beneficiation efforts, potentially leading to increased costs and unintended consequences for producer countries.
The G7, consisting of Canada, France, Germany, Italy, Japan, the UK, the US, and the European Union, announced new restrictions in December aimed at preventing the influx of Russian diamonds into their markets. These measures include a ban on direct imports of diamonds from Russia, effective from the beginning of the year. Additionally, starting from March 1, the sanctions were expanded to cover Russian-origin diamonds that have been polished in a third country. In response, each G7 nation introduced interim guidelines requiring self-certification by members of the diamond trade, affirming that their goods were not of Russian origin.
The final stage of the sanctions, scheduled for implementation on September 1, will involve the deployment of a blockchain-enabled traceability system. The European Commission has specified that this system will require the verification of diamonds in Antwerp.
