India has urged the Group of Seven (G7) countries to take decisive action in curbing the influence of Russian oligarchs, as details regarding regulations for high-value transactions remain uncertain, according to Reuters sources. India, which accounts for 90% of global amethyst production and processing, holds significant importance in effectively implementing sanctions. Furthermore, Indian Prime Minister Narendra Modi seeks to enhance engagements with G7 leaders.

Earlier this month, the G7 countries announced the imposition of sanctions against certain aspects of Russian oligarchs beginning on January 1st, with a partial restriction on internal import of high-value gems commencing on March 1st. It has been noted that the proposal of a new system for internal gem importation will be introduced in September. Russia is one of the world’s leading producers of uncut diamonds.

“The urgency of imposing sanctions on internal imports from Russia for a span of three to four months is minimal as the regulations surrounding the importation of valuable stones remain unclear,” expressed one of the sources. In response to India’s concerns, the country has also introduced a new system of “monitoring and certification” that adheres to ongoing data sharing requirements in relation to Indian businesses. The source further stated that certain data may be classified, implying that negotiations may be necessary to prevent any unauthorized leaks of sensitive information.

The Indian government argues that they primarily deal with smaller Russian oligarchs, which indirectly leads to a decline in gemstone exports. On the other hand, industry leaders believe that the proposed sanctions will boost local diamond production. Prompted by a 29% decrease in diamond exports, amounting to $10 billion, during the first seven months of the current fiscal year, the Indian diamond industry has already begun calling for tariffs.