Following a G7 ban on Russian diamonds in January, Antwerp was selected in March as the sole location able to certify the origin of rough diamonds and issue G7 certificates. Botswana will soon join Belgium as a verification and certification hub.
“This is a welcome step for the Indian diamond cutting and polishing sector. It will cut the logistics cost on stones as they can be directly imported from Botswana,” Vipul Shah, chairman of GJEPC said.
Botswana, which is Africa's biggest diamond producer and the second worldwide after Russia. Botswana is also an assortment hub for rough stones originating from the African continent.
After the Russian ban, G7 countries had proposed a procedure of certification and verification process, which was supposed to come into effect from March 2025. As per this, the African roughs will be assorted in Botswana, go to Belgium for certification, will be shipped to India for processing and before exporting to G7 countries, will once again go to Belgium to verify whether uncertified Russian diamonds are used.
With Botswana becoming a verification and certification hub, now it can be assorted and certified in Botswana, sent to India and verified in Belgium before exporting to G7 countries. Though the process will add the cost of logistics, it will be lesser than the earlier procedure. As of now, Indian exporters are providing a written statement that Russian diamonds are not processed and exported to G7 countries, said Sabyasachi Ray, executive director of GJEPC.
India too had asked G7 countries to approve it as a verification and certification hub, which could bring down the cost significantly. However, the demand has not been met yet. The industry is still hopeful about getting the nod from G7 countries.