Foreign Minister Mélanie Joly has authorized a partial exemption for Canadian jewelers from sanctions on Russian diamond imports, despite her previous commitment to increase efforts against Russian war financing. Blacklock's Reporter says the move comes after concerns from the diamond industry regarding the impact of the sanctions.In a notice under Special Economic Measures Regulations, Joly’s department explained that the exemption was necessary to prevent financial burdens on jewelers without significantly affecting Russia’s revenue from diamond exports. “Not allowing an exemption for these diamonds puts a financial burden upon the diamond industry without affecting Russia’s revenues from diamond exports,” the department stated.The Canadian Jewelers Association has not commented on the decision. Russia is the world’s largest producer of diamonds, with annual exports valued at approximately $5 billion.Under the current sanctions, Canadians are prohibited from importing, purchasing, or selling Russian diamonds. However, the exemption addresses complaints from lobbyists that the sanctions had unintentionally blocked shipments already in transit. The Regulatory Impact Analysis Statement explained that the industry faced difficulties with "legacy diamonds" that had been legally purchased before the sanctions came into effect but were caught in transit.“The diamond industry, including Canadian industry representatives, requested the G7 address this ‘legacy diamond’ issue,” said the statement. The exemption permits Canadian operators to import diamonds of Russian or unknown origin, provided they were already outside of Russia when the ban was implemented.Russian diamond imports to Canada were valued at $4.1 million annually before the Ukraine war. The amendment, according to the department, eliminates a financial burden on the Canadian diamond industry.Joly had previously emphasized the need for strong sanctions to limit Russia's war efforts. In a 2022 report to Parliament, she called for continued pressure on the Russian regime, noting that “all options remain on the table.” She had also stressed the gravity of the global security threat posed by Russia’s invasion of Ukraine, calling it "the greatest challenge to global security since World War II."
Foreign Minister Mélanie Joly has authorized a partial exemption for Canadian jewelers from sanctions on Russian diamond imports, despite her previous commitment to increase efforts against Russian war financing. Blacklock's Reporter says the move comes after concerns from the diamond industry regarding the impact of the sanctions.In a notice under Special Economic Measures Regulations, Joly’s department explained that the exemption was necessary to prevent financial burdens on jewelers without significantly affecting Russia’s revenue from diamond exports. “Not allowing an exemption for these diamonds puts a financial burden upon the diamond industry without affecting Russia’s revenues from diamond exports,” the department stated.The Canadian Jewelers Association has not commented on the decision. Russia is the world’s largest producer of diamonds, with annual exports valued at approximately $5 billion.Under the current sanctions, Canadians are prohibited from importing, purchasing, or selling Russian diamonds. However, the exemption addresses complaints from lobbyists that the sanctions had unintentionally blocked shipments already in transit. The Regulatory Impact Analysis Statement explained that the industry faced difficulties with "legacy diamonds" that had been legally purchased before the sanctions came into effect but were caught in transit.“The diamond industry, including Canadian industry representatives, requested the G7 address this ‘legacy diamond’ issue,” said the statement. The exemption permits Canadian operators to import diamonds of Russian or unknown origin, provided they were already outside of Russia when the ban was implemented.Russian diamond imports to Canada were valued at $4.1 million annually before the Ukraine war. The amendment, according to the department, eliminates a financial burden on the Canadian diamond industry.Joly had previously emphasized the need for strong sanctions to limit Russia's war efforts. In a 2022 report to Parliament, she called for continued pressure on the Russian regime, noting that “all options remain on the table.” She had also stressed the gravity of the global security threat posed by Russia’s invasion of Ukraine, calling it "the greatest challenge to global security since World War II."
