Further Delay for G7 Traceability Mechanism
March 03, 25
(IDEX Online) - Plans to support diamond sanctions on Russia with a blockchain-backed traceability mechanism have been delayed for a second time.
The G7 and EU nations originally intended to implement the scheme on 1 September 2024, but in June 2024 it was put back to March 2025. And last week it was delayed again, until 1 January 2026.
The announcement was made last week in the 16th sanctions package against Russia, marking the third anniversary of its invasion of Ukraine.
The postponement has been widely welcomed within the industry, where many feel the introduction would otherwise be rushed and poorly planned.
The Antwerp World Diamond Centre (AWDC) said an additional 10 months would give diamond companies time to prepare properly.
"At this stage, there is still considerable uncertainty about how the traceability system will function and how it will be governed, and the G7 must first clarify these aspects," said CEO Karen Rentmeesters.
The new sanctions package also requires diamond traders importing rough diamonds of mixed origin to present a Kimberley Process certificate listing all countries of origin.
"Addressing governance issues associated with the traceability system will require ongoing cooperation with the Group of Seven (G7) and third countries," said the Council of the European Union in its announcement of the delay.