New sanctions against Russia’s “war machine” were launched by the United States and its G7 allies on Friday, focusing on the lucrative diamond trade in Moscow and more businesses involved in the invasion of Ukraine.
Leaders of the Group of Seven wealthy countries are debating the $4–$5 billion in yearly diamond trade with Russia in Hiroshima, Japan.
The Unified G7
New sanctions against Russia’s “war machine” were launched by the United States and its G7 allies on Friday, focusing on the lucrative diamond trade in Moscow and more businesses involved in the invasion of Ukraine.
The $4–$5 billion in annual diamond trade with Russia is a hot topic during the G7 summit taking place in Hiroshima, Japan. Volodymyr Zelensky, the president of Ukraine, is scheduled to speak at the summit over the weekend via video link, as the hosts’ Japan has put a stop to rumors that he could show up in person at the last minute.
- Sanctions launched against Russia’s war machine.
- Volodymyr Zelensky is scheduled to speak at the G7 summit via video link.
- Moscow has implemented capital controls, rerouting trade, and stealing evasion strategies.
Britain declared its own “ban on Russian diamonds,” focusing on imports of aluminum, copper, and nickel. For the time being, the G7 is probably going to refrain from outright banning Russian diamonds.
Belgium, India, and the United Arab Emirates are among the biggest wholesale consumers of Russian diamonds, and the G7 conference will show a commitment to take action on this issue. The US is a significant final consumer market for the commodity, and economists disagree on the extent to which G7 sanctions have harmed Russia’s military effort.
Moscow has quickly adjusted, enacting stringent capital controls, rerouting trade to allies, and stealing evasion strategies from heavily sanctioned nations. A small 0.7% economic recovery is what the IMF expects to see in 2023. The G7 leaders will also use the conference to court the invited presidents of Brazil and India, two regional heavyweights that occasionally resisted criticizing Beijing or Moscow.
