Canada, in coordination with its G7 partners, will impose new import restrictions on Russian diamonds and diamond jewellery products.

According to a joint statement issued by the G7 countries, import restrictions on non-industrial diamonds that are mined, processed, or produced in Russia will be introduced by Jan. 1, 2024. This will be followed up by further phased restrictions on imports of Russian diamond products processed in third countries with a tentative start date of March 1, 2024.

As well, G7 members who are major importers of rough diamonds will establish a robust traceability-based verification and certification mechanism for rough diamonds within the G7 by September 1, 2024.

This announcement follows a commitment made in May 2023 by G7 leaders to work collectively to reduce the revenues that the Putin regime extracts from the export of non-industrial diamonds mined, processed or produced in Russia.

According to a press release, Canada will continue working with its G7 and other international partners to implement comprehensive controls and verification measures for banning Russian diamonds.

By reducing the revenues that Russia extracts from the diamond industry, Canada hopes to ensure that proceeds from the export of Russian diamonds and diamond-related products will not contribute to financing conflict.

“The implementation of this ban, in collaboration with our G7 partners, sends a clear message to Russia: we will not tolerate the use of Russia’s diamond revenues to finance war,” said Mélanie Joly, Minister of Foreign Affairs. “We call on President Putin to immediately put an end to this unjustifiable war of aggression against Ukraine, and we will continue to stand by Ukrainians for as long as it takes.”

Russia is the world’s largest producer of rough diamonds, with its production valued at more than $4.7 billion in 2022. Russia is also a significant global exporter of diamonds and diamond products, with the value of its total exports exceeding $5.2 billion in the same year.

Together, G7 countries represent 70% of the world diamond market. Canadian imports of the Russian products that are subject to today’s ban totalled $4.1 million in 2021.

Following Russia’s full-scale invasion of Ukraine in 2022, Canada sanctioned Russia’s state-owned diamond conglomerate, Alrosa. Canada also removed Russia’s Most Favoured Nation status, which effectively imposed a 35% tariff on all imports to Canada. This led to a drastic decrease of all Russian imports, including products that will be subject to this ban, to $327,224 in 2022 and $13,440 for the first eight months of 2023.

Since 2014, Canada has imposed sanctions on more than 2,700 individuals and entities who are complicit in the violation of Ukraine’s sovereignty and territorial integrity in Russia, Belarus, Ukraine, and Moldova. Canada has also implemented targeted restrictions against Russia and Belarus in the financial, trade (goods and services), energy and transport sectors.

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