G7 Ban on Russian Diamonds: How Sanctions Are Reshaping the Global Rough Diamond Supply Chain in 2026
Updated: September 2026
The global diamond industry has changed considerably since the G7 countries began restricting Russian-origin diamonds.
When I first wrote about this subject a few years ago, one of the main concerns was whether removing Russian rough diamonds from major Western markets would create shortages and increase diamond prices.
The situation today is more complicated.
Russian diamonds remain an important part of world production, but the G7 and European Union restrictions have changed how diamonds are imported, documented, traced and traded. At the same time, the natural diamond industry is facing other pressures, including weaker demand in some major markets, high inventories, competition from laboratory-grown diamonds and changing international trade conditions.
Therefore, the impact of the Russian diamond ban should no longer be viewed simply as a question of diamond shortage and higher prices. It has become a much broader story about diamond origin, traceability, responsible sourcing and the restructuring of the international diamond supply chain.
Why Were Russian Diamonds Restricted?
The G7 measures were introduced as part of sanctions responding to Russia's invasion of Ukraine.
The European Union's direct prohibition on Russian non-industrial diamonds took effect on 1 January 2024. Restrictions were subsequently extended to Russian diamonds processed in third countries, preventing a Russian-origin rough diamond from automatically escaping the restrictions simply because it was cut and polished elsewhere.
This distinction is particularly important in the diamond industry.
A diamond may be mined in one country, sorted or traded in another, cut and polished in another country and finally sold as jewelry thousands of kilometres away. Establishing the country of mining origin therefore became one of the central challenges of implementing the restrictions.
Russia Is Still a Major Rough Diamond Producer
The sanctions should not be confused with the disappearance of Russian diamonds from global production.
According to Kimberley Process statistics, Russia produced approximately 31.5 million carats of rough diamonds in 2025, valued at about US$2.72 billion. Russia also reported rough diamond exports of approximately 29.8 million carats, valued at about US$2.54 billion, during the year.
These figures demonstrate an important point: sanctions imposed by G7 and EU markets have changed where and how Russian diamonds can be traded, but Russia remains a major diamond-producing country.
The EU has also continued applying pressure to the Russian diamond sector. In July 2026, its 21st sanctions package included additional measures involving the gold, diamond, mining and metallurgy sectors.
Antwerp's Diamond Trade Has Changed
Antwerp has historically been one of the world's most important diamond trading centres.
According to the Antwerp World Diamond Centre (AWDC), Russian diamonds previously represented approximately 35% of Antwerp's annual diamond trade. AWDC states that Russian diamonds have no longer flowed through Antwerp since the EU and G7 sanctions introduced in January 2024.
This is a major structural change.
It means that traders supplying G7 and European markets increasingly need reliable information about where their rough diamonds were mined and documentation that can follow those goods through cutting, polishing and subsequent trading.
The 0.50-Carat Threshold and Origin Documentation
Traceability has become one of the most important consequences of the sanctions.
For rough diamonds entering the EU, the threshold was lowered to 0.50 carat and above from 1 September 2024. In-scope rough diamonds entering the EU are subject to origin verification requirements, with Antwerp serving as the EU's rough-diamond verification point.
Another important change came in March 2025.
For relevant mixed-origin rough diamond shipments entering the EU, Kimberley Process certificates must identify the countries of mining origin rather than simply describing the parcel as mixed origin without identifying those countries.
This makes provenance increasingly important throughout the diamond business.
What Changed in 2026?
The beginning of 2026 brought another important stage in diamond-origin compliance.
From 1 January 2026, traders importing in-scope natural polished diamonds into the EU are required to provide a Due Diligence Statement on Diamond Origin, declaring the diamonds to be non-Russian and confirming that reasonable efforts have been made to verify their origin.
However, an important clarification is necessary.
Earlier plans suggested a broadly mandatory digital traceability platform. Current AWDC guidance states that use of a digital traceability platform is not presently mandatory in all cases; documentary evidence and due-diligence requirements remain important parts of the system.
This illustrates how the regulatory system is still developing.
For diamond traders, manufacturers and jewelers, paperwork concerning origin is becoming almost as important as traditional information concerning weight, quality and value.
The Kimberley Process and the G7 Restrictions Are Not the Same
The Kimberley Process Certification Scheme (KPCS) remains fundamental to the international trade in rough diamonds, but the G7 restrictions represent an additional layer of controls.
The Kimberley Process was primarily established to prevent conflict diamonds from entering the legitimate rough diamond trade.
The G7/EU restrictions have a different legal and geopolitical basis and specifically address Russian-origin diamonds.
Consequently, a Kimberley Process certificate and compliance with applicable G7/EU sanctions should not automatically be considered the same thing. European Commission guidance states that the sanctions system complements Kimberley Process certification and verification.
For official statistics and information on participating countries, readers can consult the Kimberley Process.
Did the Russian Diamond Ban Cause Diamond Prices to Rise?
This is where my earlier article needs the greatest correction.
It would now be misleading to say simply that the Russian diamond ban created a shortage of rough diamonds and therefore caused diamond prices to rise.
The global natural diamond market has experienced significant weakness from several directions.
Botswana, one of the world's most important diamond-producing countries, entered 2026 with a very large inventory of unsold diamonds. Reuters reported that its stockpile reached approximately 12 million carats by December 2025, while weak global demand and competition from laboratory-grown diamonds continued to affect the industry.
De Beers has also faced difficult market conditions. In February 2026, Anglo American reported a major writedown of its De Beers business amid lower demand and oversupply in the diamond market.
Therefore, today's diamond prices cannot reasonably be attributed to Russian sanctions alone.
Sanctions affect availability in particular markets, trading routes, compliance costs and sourcing decisions, while prices are simultaneously influenced by consumer demand, inventories, economic conditions, lab-grown diamond competition and other international trade developments.
Impact on India and the Cutting Industry
India is particularly important because Surat is the world's dominant diamond cutting and polishing centre.
The difficulties facing Indian manufacturers demonstrate why the present diamond crisis cannot be explained by Russian sanctions alone.
During 2025, Surat's industry was affected by weakening international demand and changing U.S. trade conditions. Reuters reported that Surat processes more than 80% of the world's rough diamonds, illustrating how developments affecting India can quickly influence the entire global diamond pipeline.
The modern supply chain therefore needs to be viewed as interconnected:
Diamond mine → Rough sorting → International trading → Cutting and polishing → Grading and certification → Jewelry manufacturing → Retailer → Consumer
A disruption or new regulatory requirement at any point can affect businesses further along the chain.
Opportunities for African Diamond-Producing Countries
The restructuring of the supply chain could also create opportunities for diamond-producing countries outside Russia.
Botswana, Angola, Namibia, South Africa and other African producers have an important role in global rough supply.
But the opportunity is not simply about producing more diamonds.
Increasing emphasis on country-of-origin verification could encourage producing nations to develop better systems for documenting diamonds closer to the mine.
Belgian authorities have argued that improved traceability could increase transparency in the international diamond sector and potentially help producing countries capture more benefits from diamond extraction.
For producing countries, this could eventually make verified origin an increasingly valuable commercial characteristic.
Responsible Sourcing Is Becoming Part of the Diamond's Identity
Traditionally, diamond buyers concentrated heavily on the familiar quality factors:
Carat – Color – Clarity – Cut
Those factors remain essential.
However, the international market is increasingly interested in another question:
Where did this diamond come from?
Origin documentation, chain of custody, sanctions compliance and responsible sourcing are becoming more significant for manufacturers, traders, jewelers and ultimately consumers.
This development extends beyond the Russian sanctions.
On 21 September 2026, the World Diamond Council completed the transition to its revised System of Warranties (SoW). The revised framework applies across rough diamonds, polished diamonds and diamond jewelry and incorporates broader due-diligence principles.
Readers interested in responsible diamond trading can learn more from the World Diamond Council.
What Does This Mean for Gemologists?
For gemologists, this development raises an interesting distinction.
Gemological examination can tell us an extraordinary amount about a diamond. We can determine whether it is natural or laboratory-grown, evaluate its gemological characteristics and sometimes obtain valuable clues about geological origin.
But sanctions compliance and documented country of mining origin are fundamentally supply-chain questions.
A gemological report alone should not automatically be treated as proof that a diamond was mined in a particular country.
This means documentation, traceability and gemological examination increasingly work alongside one another.
The Future of the Rough Diamond Supply Chain
The G7 restrictions on Russian diamonds have not removed Russian production from the world market, nor have they alone determined global diamond prices.
Their more lasting effect may be the transformation of the diamond industry's approach to provenance.
The industry is moving toward a market in which the journey of a diamond—from mine to cutting centre, trading hub, laboratory, jeweler and final consumer—can matter almost as much as its traditional gemological characteristics.
For traders, this means more documentation and due diligence.
For producing countries, it may create opportunities to demonstrate transparent and responsible origin.
For laboratories and gemologists, it highlights the important difference between gemological identification and documented supply-chain provenance.
And for consumers, it may eventually mean greater transparency about the history behind the diamond they purchase.
The Russian diamond sanctions therefore represent more than a restriction on one producing country. They are contributing to a wider transformation of the international diamond trade—one in which origin, traceability and responsible sourcing are becoming increasingly important parts of a diamond's commercial identity.
Authoritative Resources
For readers who want to follow regulatory and industry developments:
European Commission — Restrictions on Diamonds
Antwerp World Diamond Centre — G7 Diamond Sanctions Guidance
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