The G7 Ban: What’s Prohibited in 2026
The G7 sanctions on Russian diamonds were introduced in phases beginning in January 2024. Phase 1 prohibited direct imports of Russian-origin rough diamonds. Phase 2 extended the ban to Russian-origin polished diamonds, regardless of where they were cut or polished. By 2026, the restrictions cover all diamonds above 0.50 ct that originated as Russian rough, even if they were polished in India, Belgium, or elsewhere.
This means a diamond mined by Alrosa in Yakutia, shipped to Surat for cutting, and polished to GIA Excellent grade is still sanctioned if its origin is traced to Russia. The enforcement mechanism relies on Belgium’s Antwerp World Diamond Centre (AWDC), which serves as the designated verification hub for G7-bound goods. Diamonds above 1.00 ct entering the G7 market must pass through Antwerp’s verification process with origin documentation.
The EU Traceability Mandate: Beyond Kimberley Process
The European Union has taken diamond provenance requirements beyond the Kimberley Process framework. New regulations effective in 2026 require full chain-of-custody documentation for all natural diamonds sold in the EU market — from mining source through rough trading, cutting, polishing, and final sale. This is the most comprehensive traceability requirement in the diamond industry’s history.
Key compliance elements include: digital origin declarations linked to each stone or parcel, rough trading records showing the source mine or alluvial deposit, processing records from the cutting facility, and export documentation matching the KP certificate. The industry is converging on platforms like Verifico and De Beers’ Tracr for digital compliance, though no single platform has achieved universal adoption yet.
Impact on Indian Diamond Exports
India’s diamond industry has been significantly affected because Surat historically processed substantial volumes of Russian-origin rough. Alrosa was a major supplier to Indian manufacturers through Antwerp and Mumbai trading channels. The sanctions have forced a major sourcing pivot toward African (Botswana, South Africa, Namibia, Angola), Canadian, and Australian rough.
The Directorate General of Foreign Trade (DGFT) responded with practical support: Notification No. 73/2025-26 extended the zero-duty re-import window for cut and polished diamonds from three to four months, helping exporters manage logistical delays caused by the new verification requirements. Additionally, GJEPC has been coordinating with Antwerp’s verification centre to streamline compliance for Indian exporters.
How Rachna Export Ensures Full Compliance
Rachna Export eliminated all Russian-origin rough from our supply chain in Q2 2024, ahead of the Phase 2 deadline. Our current rough sourcing is exclusively from DTC (Botswana, South Africa, Namibia, Canada) sightholders and verified non-Russian African alluvial production. Every rough parcel entering our Surat SEZ facility is documented with country of origin, supplier KP certificate, and Verifico digital chain-of-custody records.
For G7-destined parcels above 1.00 ct, we route through Antwerp’s verification centre as standard, including all required documentation in the deal file. Our compliance documentation package — KP certificate, origin declaration, SA8000 audit report, Verifico chain-of-custody, and GIA/IGI certification — is assembled for every shipment to EU and G7 markets. Buyers receive a single compliance file that satisfies all current regulatory requirements.
What Buyers Must Do Now: A 2026 Compliance Checklist
First, audit your existing inventory for Russian-origin exposure. Any stones purchased before the sanctions that lack clear non-Russian origin documentation may face challenges at resale into G7 markets. Establish origin certainty for your current stock before it becomes a commercial problem.
Second, require origin documentation from every supplier for every parcel. A supplier who cannot or will not provide country-of-origin declarations and KP certificates should be replaced immediately. The compliance cost of working with non-transparent suppliers far exceeds the cost of switching.
Third, adopt a digital traceability platform. Whether you use Verifico, Tracr, or another system, digital chain-of-custody is rapidly becoming a market access requirement rather than a nice-to-have. Rachna Export provides Verifico-compatible documentation for all natural diamond shipments and can integrate with buyer-specified platforms on request.