In a relief for the Indian diamond industry, Kimberley Process Certification Scheme (KPCS) will reportedly not hold a discussion on Russia’s invasion of Ukraine and the restrictions on its rough diamond supply. Earlier, a proposal by Ukraine, the US, the UK, European Union, Australia and Canada was included in the agenda for a one-hour long discussion. The meeting of KPCS is scheduled during June 20-24 in Botswana. However, following objections by countries like Russia, Belarus, Kyrgyzstan and the Central African Republic, the item has been removed from the agenda. The countries objecting to the discussion claimed that it is beyond the scope of KPCS. The Kimberley certification scheme was introduced in 2003 to prevent the flow of conflict diamonds that funded terrorism in certain parts of the world while the conflict diamond trade funded civil wars in countries like Sierra Leone, Liberia and Angola.

Meanwhile, the US and the UK have already placed sanctions on rough diamonds mined in Russia. ALROSA, a state- owned diamond mining company in Russia contributes 30 per cent of the global rough supply and is the largest rough supplier in the world. Alrosa supplies a small size of rough and many smaller diamond polishing units in Surat and rural areas of Gujarat depend upon it. “The details of KP, considering restrictions on Russian diamonds had created panic in the market. However, after the fresh announcement, it will not further damage the sentiments of the market that is struggling to cope up with the globally adverse conditions,” said a diamond businessman. Jayanti Savaliya, President of Surat Jewellery Manufacturers’ Association said, “There are already restrictions and further restrictions would have impacted the industry for a long time. This development has come in favour of Surat and we hope the situation gets better soon.” Dinesh Navadiya, Regional Chairman of Gem and Jewellery Export Promotion Council (GJEPC) said, “Already there are restrictions against Russian rough by the US and the UK. The development will not have much impact on the local industry as we are not importing rough from Russia due to restrictions.”

News courtesy: The Times of India