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G7 leaders are expected to announce on Wednesday a ban on Russian diamonds and measures to manage some 300 billion euros ($323.58 billion) in immobilised Russian central bank assets and the G7 oil price cap, sources familiar with the matter said.
G7 leaders are having a virtual meeting later on Wednesday.
One source specified that the G7 was expected to announce a direct ban as of Jan. 1 and then an indirect ban with a phase in period from March 1 until Sept. 1.
During the phase-in period, diamond companies will be able to use a self-declaration system like one provided by the World Diamond Council, the source added.
The system will use tracing and certification done through G7 countries and only apply to rough diamonds in an initial phase. Western countries initially looked at various proposals that covered rough and polished gems but countries could not agree on polished.
On the oil side, western nations have admitted that the impact of their $60 price cap on Russian crude oil has waned one year in, and the countries have been looking at ways to strengthen implementation. The EU’s latest proposed package of sanctions on Russia includes some measures to capture details on “ancillary costs” and slow the sale of old western ships to Russia’s so-called “shadow fleet”.
Meanwhile, the United States has started to impose sanctions on those who violate the price cap. Last week, Washington imposed additional sanctions, targeting three entities and three oil tankers as Washington seeks to close loopholes in the mechanism designed to punish Moscow for its war in Ukraine.
As for immobilised Russian assets, the European Commission is expected to propose next week a way to capture the windfall from the interest gained on the frozen assets. Coordination with the G7 is essential, however, as the assets are spread between various currencies though most is being held by Belgian clearing house Euroclear.
