G7 Sanctions On Russian Diamonds Will Have Pessimistic Outcome For Indian Diamond Workers
The G7 announced new sanctions against Russia's "war machine" that targeted the country's valuable diamond industry and additional businesses involved in the invasion of Ukraine, this sanction isn't going to effect Russia but also India.
One million diamond laborers in Surat may lose their employment as a result of the G7’s decision to impose further sanctions on Russian diamonds. Nine out of every ten diamonds in the world are cut and polished in India, A diamond mining corporation sells Russian diamonds to Indian dealers. According to reports, it produces 30% of the world’s rough diamonds.
Why is G7 imposing sanctions on Russia?
It’s due to Russia’s invasion of Ukraine last year, the G7 nations began to impose sanctions on the country. The sanctions on Russian diamonds have been a setback for the Surat diamond industry, which is already suffering from a decline in demand and a slump in the world economy.
The restrictions have reduced the supply of raw diamonds, which has an impact on diamond traders’ jobs. Vipul Shah, the chairman of the Gem and Jewellery Export Promotion Council (GJEPC), claimed that the sector has managed with fewer supplies because there is currently less demand.
According to him, the issue will surface as diamond demand rises. The G7 said in a statement following the most recent summit held in Japan that it wants to focus on the money Russia makes from diamond exports. As a group, they will continue to work closely with each other to restrain trade in and usage of diamonds mined, processed, or manufactured in Russia while maintaining partnerships with key partners with the goal of ensuring effective implementation of additional coordinated restrictive measures,” the grouping stated.
The report quoted the GJEPC chairman as saying that there is no technology that can trace the origin of diamonds. He mentioned the Kimberley Process’s current system, which was set up in 2003. Under the arrangement, countries provide certificates on the shipment of diamonds to classify them as “conflict-free.” The G7 is working to improve its traceability technologies in order to identify the origin and the action of Russian diamonds.
G7 isn’t the only one imposing sanctions on Russia
The UK has announced an embargo on Russian diamonds, the military-industrial complex, and metals as part of a new wave of sanctions in response to the ongoing conflict in Ukraine. The export prohibition on diamonds coincides with the current conflict between Russia and Ukraine and is anticipated to have an impact on a sector with USD 4 billion in exports in 2021. The UK government stated in a statement on Thursday that the embargo has also been issued on imports of copper, aluminum, and nickel of Russian provenance.
The UK is preparing to pick out an additional 86 members of Putin’s military-industrial complex, also those who are involved in crucial areas such as metals, energy, and shipping in addition to current trade penalties, the statement stated. The Kremlin actively aids in efforts to lessen the impact of present sanctions, the UK said, and it is engaging with G7 allies to address all sorts of sanctions circumvention.
Prime Minister Rishi Sunak will warn against complacency in defending “our ideals and against despotic governments” as he meets with G7 leaders in Hiroshima, the UK government said. The UK has imposed the worst set of sanctions ever enforced on a big economy, it claimed, in order to impede Russia’s war effort.
We have imposed sanctions on more than 1,500 people and organizations so far, frozen more than £18 billion in UK assets, and prohibited more than £20 billion in trade between the UK and Russia, according to a statement from the UK government. The prime minister will visit the A-Bomb dome site at the Hiroshima Peace Park with the other G7 leaders before taking part in discussions on international cooperation, the G7 response to the nuclear non-proliferation of Ukraine, and Indo-Pacific security policy.
In the interests of global peace and security, he will call on the international community to maintain its course on Ukraine and make sure it receives the necessary diplomatic, military, and financial support. The Prime Minister stressed the importance of long-term international support for Ukraine, notably for the country’s future in NATO, during his meeting with President Zelenskyy on Monday. He also confirmed increased military assistance. After that meeting, we’re making this announcement. The leaders discussed Ukraine’s path towards a more powerful political coalition and closer collaboration with G7 and NATO countries.
Russia has significantly intensified its missile strikes on Ukraine in recent months, but it also appears that Ukraine is shooting down more of Russia’s missiles. To significantly restrict Russia’s access to goods that are crucial for the battlefield capabilities,” the US also announced new sanctions, as mentioned by a US official on Friday ahead of a G7 conference in Japan.
It has been reported that the US is planning to put roughly 70 businesses and organizations under blacklist due to exporting prohibited US goods to Russia.“We’ll keep enforcing export controls to make it difficult for Russia to sustain its weapons equipment. This includes, among other things, severely restricting classes of commodities essential to the field of combat and blocking approximately 70 entities from Russia and other nations from receiving US exports by putting them under the Commerce blacklist’, as mentioned by the officials.
Proofread & Published By Naveenika Chauhan
