London Daily

Focus on the big picture.
Monday, Jul 20, 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
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Just Another Liar or a Robin Hood? Andy Burnham Pledges Cost-of-Living Help in First Speech as UK Prime Minister
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
Thames Water Crisis Deepens as South East Water Outages Hit Thousands in Kent
EU Ban on Destroying Unsold Clothing Forces British Fashion Brands to Change Operations
UK Government Confirms Existing North Sea Oil and Gas Licences Will Be Honoured
UK Covid Inquiry Finds Nearly Ten Billion Pounds Lost in Pandemic Protective Equipment Procurement
Thames Water Moves Toward Possible Temporary Nationalisation Amid Rescue Plan Dispute
Andy Burnham Cancels One Point Eight Billion Pound Digital ID Programme After Taking Office
UK Government Takes British Steel Into Full Public Ownership to Protect Jobs and Supply Chains
Andy Burnham Becomes UK Prime Minister and Pledges Focus on Living Costs and Public Services
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Bank of England Warns Climate Shocks Could Trigger Sudden Asset Repricing
UK Treasury Places Microsoft, Google, AWS and Oracle Under New Financial Resilience Rules
Scottish Government Faces Pressure Over Delays in Vulnerable Group Background Checks
Crown Prosecution Service Authorises Additional Charges Against Andrew and Tristan Tate
NHS Approves At-Home Cancer Treatments for Rare Blood Disorders
Bank of England Gains Oversight of Major Cloud Providers Supporting UK Financial System
UK Government Plans Major Overhaul of English Local Councils Through New Unitary Authorities
British Steel Nationalisation Dispute Escalates as Chinese Owner Jingye Seeks Compensation
Bank of England Signals Interest Rates Will Stay High as It Warns of Financial Risks From Climate and AI
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
×