US Cools on Traceability for Russian Goods
May 19, 24
(IDEX Online) - The United States is reportedly softening its position on Russian sanctions, amid suggestions that it may not implement a traceability program like the EU.
Miners, manufacturers and retailers have all rallied against the phased set of G7 restrictions which will, by 1 September, see a ban on all Russian gem quality diamonds of 0.50-cts or above, regardless of where they are cut and polished.
The US, one of the G7 nations that agreed to the sanctions last December is now said to be "re-evaluating the strictest elements", according to a Reuters report.
It cites one anonymous source in the Biden administration as saying there had to be the right balance between hurting Russia and making sure the sanctions could be implemented.
Another indicates that it may not be possible to implement an effective traceability mechanism by 1 September. In addition, there is a suggestion that the G7 agreement mandates such a program in the EU but not the US.
The US was the first to sanction Russian diamonds after it invaded Ukraine in March 2022, but the ban excluded goods manufactured elsewhere - ie the vast majority - and had a negligible impact.
Pic shows rough diamonds, courtesy Alrosa.