London Daily

Focus on the big picture.
Thursday, Jul 16, 2026

Will a Russian diamond ban be effective?

Will a Russian diamond ban be effective?

The UK has announced a ban on Russian diamonds as it tightens sanctions over Russia's war in Ukraine.

Countries in the G7 bloc also want to be able to trace the gemstones to block Russian exports as they try to limit cash flowing into Russia's war chest.

But how effective will these schemes be, and could there be unintended consequences?


How important are Russian diamond exports?


Russia's diamond trade, worth about $4bn (£3.2bn) per year, makes up a small proportion of its overall exports.

Before the invasion of Ukraine, Russia's total exports reached $489.8bn in 2021, according to the central bank, with oil and gas making up $240.7bn of that.

Nevertheless, Russia is the world's biggest diamond exporter by volume, followed by African countries.

A state-owned company called Alrosa dominates Russian diamond mining - and it mined almost a third of the world's diamonds in 2021.

Profits from Alrosa do flow into the Kremlin war chest, according to Hans Merket, a researcher with the International Peace Information Service - but it is nowhere near as important as oil and gas.



Why does the G7 want to track Russian diamonds?


Western countries want to cut off this revenue stream as part of efforts to hamper Russia's war.

However, the world's diamond trade is complex, and lacks transparency.

Diamonds can change hands 20 to 30 times between mine and market, Mr Merket said.

Typically the gemstones pass through the main global hubs of Antwerp, Dubai, Mumbai and Ramat Gan, which is near Tel Aviv.

Traders grade the stones for carat (weight), colour, clarity and cut - with different traders looking for different attributes.

They then take the remaining gemstones, mix them up, and sell them on - and the process is repeated.

Traders and firms jealously guard where they source their diamonds - it's their "secret sauce", according to Tobias Kormind, managing director of online jeweller 77 Diamonds.

But the major industry players could restrict the trade of Russian diamonds if they pulled together, he said.


How could the flow of Russian diamonds be restricted?


The US has already brought in sanctions to try to ban Russian diamond exports.

However, there is a "massive loophole" here, Mr Kormind said.

The restrictions apply to rough diamonds - but once they have been cut and polished, the country of origin no longer matters.

People in G7 countries buy about 70% of the world's diamonds - so a G7 ban could have an effect, if the diamonds can be traced, Mr Merket said.

However, a G7 ban would mean diamonds are likely to flow to other markets in China and India, Mr Kormind said.

Tracing the diamonds would make restricting that flow easier.


How could diamonds be traced?


There is already a scheme to try to restrict "blood diamonds" used to fuel conflict, called the Kimberley Process, where states certify that diamonds are "conflict free".

However, this does not allow the diamonds to be traced to the country of origin.

Mr Merket said the simplest way of tracing diamonds would be to extend this process to include documentation of where the stones come from.

There are also technologies that mark stones, and one is being developed that can scan them to check their geographical origin.


What effects would a ban have?


The majority of Russian diamonds end up in India, where there is a major cutting and polishing centre in Surat.

Smaller diamond businesses in the city have already suffered, in part due to the US ban.

In Africa, local mining operations benefitted after US sanctions hit Russian exports. However, many African mining producers are not ready to feed into a traceability scheme, Mr Merket said, and could be excluded if one is brought in.

In Angola, Russia's Alrosa has a significant stake in mining, and tightening sanctions could hit local firms.

For Europe, traceability needs to be "watertight, scientific, [and] international", said Tom Neys, head of media relations at the Antwerp World Diamond Centre.

If not, Europe risks losing $40bn in trade annually to places that don't have the frameworks to deal with money laundering and terrorism, he said.

He added that UK sanctions "will have no impact on the sale of Russian diamonds" because the UK represents less than 1% of the global diamond trade.

A UK government spokesperson said it would work with key partners to help restrict the Russian diamond trade, "including through tracing technologies".

Newsletter

Related Articles

0:00
0:00
Close
UK Housing Reform Debate Intensifies Over Tenant Protection Measures
UK Defence Official Challenges Russian Narrative on NATO Readiness and European Security
UK Names Independent Member to Judicial Pension Board to Strengthen Oversight
UK Parliamentary Committee Sets New Framework for Select Committee Leadership Roles
UK Government Pushes Energy Savings Through School Solar Expansion Plan
UK Committee Reviews Future of Gaelic Broadcasting and Language Support
UK Government Expands Industrial Skills Support in Wales as Steel Sector Faces Change
UK Rejects Russian Claims That European Defence Spending Is Aggressive
UK Schools and Gaelic Broadcasting Among Areas Reviewed in New Parliamentary Inquiries
UK Housing Committee Calls for Stronger Tenant Protections Under Rental Reform Plans
UK Government Faces Pressure for Stronger Oversight After South East Water Failings Report
UK Parliament Opens Inquiry Into Safety of Women and Girls on Public Transport
UK Defence Ministry Appoints Interim Chief Defence Medical Officer During Transition Period
UK Government Announces Five Million Pound Skills Programme for Young People in Port Talbot
UK Government Launches Solar Programme to Cut Energy Costs for Schools
Met Office Warns Extreme Weather Is Becoming More Common Across the UK
UK Government Faces Internal Debate Over New Chancellor Appointment Under Andy Burnham
Andy Burnham Set to Become UK Prime Minister After Keir Starmer’s Resignation
UK Economy Grows Slightly in May as Supply Chain Disruptions Continue to Weigh on Industry
British Steel Moves Into UK Public Ownership to Protect Domestic Steel Production and Jobs
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Church of England Rejects Plan to Rewild Thirty Percent of Land by 2030
UK Parliament Examines Future of Gaelic Broadcasting in Scotland
Thames Water Faces Criticism Over Four Million Pounds in Bonus Payments
South East Water Crisis Puts UK Water Regulation Under Renewed Scrutiny
UK Report Highlights Racial Inequality in Homelessness Support Services
UK Government Defends Proposed Social Media Curfew for Teenagers Despite Criticism
Reform UK Gains Recognition as Major Political Party in New Polling
Labour Party Faces Internal Divisions Over Gaza Policy and Asylum Reform
Experts Warn UK Housing and Transport Infrastructure Is Unprepared for Rising Extreme Heat
UK Human Rights Committee Begins Review of Immigration and Asylum Bill
UK Parliament Launches Inquiry Into Declining High Streets Across England
Bank of England Governor Warns of Growing AI Risks to Global Financial Security
UK Public Finance Institutions Mobilize Fifty Billion Pounds to Support Growth and Jobs
UK Parliament Opens Inquiry Into Long-Term Strategy Toward Russia
UK-India Trade Agreement Takes Effect With Zero-Duty Access for Nearly All Indian Exports
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
×