De Beers expects tighter Russian sanctions soon
Thursday, April 06, 2023 | 1040 Views |
Shining on: The existing sanctions by Western nations against Russian diamonds have largely been ineffective PIC.WWW.ETSY.COM
While the United States and a number of its allies sanctioned Russian rough diamonds last March, various data sets show that these continue to trade in the global industry as their origin changes once they are “significantly transformed” through polishing in Russo-neutral centres such as India.
Producers such as De Beers have stepped up their traceability and provenance systems, allowing retailers such as Tiffany’s to block Russian-origin jewellery. However, the existing technology has limitations both in terms of the sheer volume of polished stones being traded, as well as the fact that Russia’s diamonds are mainly the smaller variety. Russia is the world’s biggest diamond producer by volume, while Botswana is the biggest by value.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...