AWDC’s Plea For Multiple Nodes Outside EU
The G7 dossier continues to stir up tempers in the diamond sector, both here in Antwerp and internationally. It is a topic that occupies many players in the industry, and that is not illogical: banning diamonds originating directly or indirectly from Russia from the European and G7 (the Group of 7 leading industrial states) markets significantly impacts many diamond companies. The sanctions taken to hit Russia and punish it for its war against Ukraine have thoroughly shaken international diamond markets. Transparency around the origin of diamonds and the traceability of those same diamonds from where they were extracted from the ground to the jeweler's window has never been so hard at the top of mind.
Workable sanction framework for all stakeholders
During the discussions on implementing the measures resulting from the sanctions, AWDC and all the other countries of the Group of 7 (G7) are at the table. Our participation in these talks is not just as experts representing the largest diamond trading center in the G7, but also as advocates for the (Antwerp) diamond sector. We are committed to a transparent and ethical diamond sector, and we fully support a ban on Russian diamonds. However, we emphasize that a ban can only be effective if the control system is strict enough, no loopholes are possible, and it is enforced uniformly by all G7 partners. We also strive to ensure that the way sanctions are enforced and control measures are implemented is feasible and workable, causing as little harm as possible to the trade of non-sanctioned goods. This is important to the Antwerp diamond industry and AWDC itself. The more diamonds find their way to Antwerp, the better for us as a diamond market hub.
Multiple verification nodes outside the EU
The feasibility and workability of the verification and certification system is a key concern. That's why we, as AWDC, actively advocate for the establishment of multiple places outside the EU and the G7 countries where rough diamonds can be verified and receive a G7 certificate. This approach, we believe, is both feasible and fair, promoting unity and shared responsibility among all stakeholders. It will enable and empower the timely and effective integration of major African producing and polishing countries into this new global reality. Currently, the Diamond Office in Antwerp is the only place in the world where rough diamonds can receive a G7 certificate. While this is a strong position, we recognize that the rest of the diamond trade could suffer from this “single certification node.” Therefore, we are exploring the potential benefits of installing one or more additional hubs where rough diamonds can be certified before being exported from their country of origin. This could provide a solution that benefits the entire diamond industry.
AWDC as role model
As an important industry organization, we are poised to play a significant role in guiding and directing the industry, having been honored by the G7 to act as a model node for rough diamond verification. This recognition means that Antwerp can be a leading example of how to successfully implement and manage a verification system, supporting the successful implementation of this initiative and fostering stronger global cooperation within the international diamond community.
