Kremlin, facing diamond ban, says EU sanctions have ‘boomerang effect’
Reuters | November 20, 2023
Red Square in Moscow, Russia (Stock Image)
The Kremlin, facing the prospect of a European Union ban on imports of Russian diamonds, said on Monday that EU sanctions tended to have a “boomerang effect” on those who applied them.
Kremlin spokesman Dmitry Peskov was commenting on a proposed EU ban on diamond imports from Russia as part of a new sanctions package against Moscow over the conflict in Ukraine.
Russia is the world’s biggest producer of rough diamonds by volume. Peskov told reporters such a move had been anticipated for a long time, but was likely to backfire.
“As a rule, it turns out that a boomerang effect is partially triggered: the interests of the Europeans themselves suffer. So far, we have been able to find ways to minimize the negative consequences of sanctions,” he said.
EU diplomatic sources said last week the proposal under discussion was to ban direct diamond imports from Russia from Jan. 1, and from March to implement a traceability mechanism that would prevent imports of Russian gems processed in third countries.
(By Mark Trevelyan; Editing by Gareth Jones)
EU proposes to ban Russian diamonds from start of 2024
Reuters | November 17, 2023 |
Polymetal’s Dukat Gold Hub in Russia. Credit: Polymetal.
The European Commission is proposing to ban imports of Russian diamonds and diamond jewellery from the start of 2024 as part of a new sanctions package to curb Russia’s ability to finance its invasion of Ukraine, a Commission proposal showed.
The proposal, under discussion by ambassadors of the EU’s 27 governments on Friday, also calls for an import, purchase and transfer ban on diamonds transiting Russia and Russian diamonds cut and polished in third countries, such as India.
The proposal said the ban applied to non-industrial natural and synthetic diamonds and diamond jewellery from January 2024. There would also be a progressive phase-in – from March 1 to Sept 1 – of an import ban of Russian diamonds when processed in third countries, including jewellery with Russian diamonds.
“This phasing-in of indirect import bans takes into consideration the need to deploy an appropriate traceability mechanism that enables effective enforcement measures and minimizes disruptions for market players,” said the proposal, seen by Reuters.
(By Philip Blenkinsop and Jan Strupczewski)
Reuters | November 20, 2023
Red Square in Moscow, Russia (Stock Image)
The Kremlin, facing the prospect of a European Union ban on imports of Russian diamonds, said on Monday that EU sanctions tended to have a “boomerang effect” on those who applied them.
Kremlin spokesman Dmitry Peskov was commenting on a proposed EU ban on diamond imports from Russia as part of a new sanctions package against Moscow over the conflict in Ukraine.
Russia is the world’s biggest producer of rough diamonds by volume. Peskov told reporters such a move had been anticipated for a long time, but was likely to backfire.
“As a rule, it turns out that a boomerang effect is partially triggered: the interests of the Europeans themselves suffer. So far, we have been able to find ways to minimize the negative consequences of sanctions,” he said.
EU diplomatic sources said last week the proposal under discussion was to ban direct diamond imports from Russia from Jan. 1, and from March to implement a traceability mechanism that would prevent imports of Russian gems processed in third countries.
(By Mark Trevelyan; Editing by Gareth Jones)
Reuters | November 17, 2023 |
Polymetal’s Dukat Gold Hub in Russia. Credit: Polymetal.
The European Commission is proposing to ban imports of Russian diamonds and diamond jewellery from the start of 2024 as part of a new sanctions package to curb Russia’s ability to finance its invasion of Ukraine, a Commission proposal showed.
The proposal, under discussion by ambassadors of the EU’s 27 governments on Friday, also calls for an import, purchase and transfer ban on diamonds transiting Russia and Russian diamonds cut and polished in third countries, such as India.
The proposal said the ban applied to non-industrial natural and synthetic diamonds and diamond jewellery from January 2024. There would also be a progressive phase-in – from March 1 to Sept 1 – of an import ban of Russian diamonds when processed in third countries, including jewellery with Russian diamonds.
“This phasing-in of indirect import bans takes into consideration the need to deploy an appropriate traceability mechanism that enables effective enforcement measures and minimizes disruptions for market players,” said the proposal, seen by Reuters.
(By Philip Blenkinsop and Jan Strupczewski)
Lucapa puts Merlin feasibility study on back burner
Cecilia Jamasmie | November 20, 2023 |
Merlin diamond project with Excalibur (foreground), Luanfal, Palomides, and Sacramore pipes. (Image courtesy of Lucapa Diamond.)
Australia’s Lucapa Diamond (ASX: LOM) has put the feasibility study for its Merlin project in Australia’s Northern Territory on hold due to what it called “unfavourable capital market and diamond price environments”.
The company it will now focus on assessing a smaller scale, lower cost path to development of the mine, which was once thought to have the potential to become Australia’s biggest commercial diamond operation.
Lucapa had originally expected Merlin to yield 2.1 million carats over its 14-year mine life, or about 153,000 carats a year.
The company, debt-free since July, said the alternate study will examine using available resources, such as the trial mining plant and front-end scrubber, to get Merlin into production.
“For the next 12 months we will focus on further strengthening our balance sheet. Rather than raise capital to fund the original Merlin development, we will focus on a lower cost pathway to development using existing resources,” managing director Nick Selby said in the statement.
The diamond market was one of the great winners of the global pandemic, as stuck-at-home shoppers turned to diamond jewellery and other luxury purchases. Sales this year have declined on the back of inflation in the US, by far the sector’s most important market, and China’s slowdown.
The drop in demand for polished diamonds, down about 20% this year, has triggered an even bigger collapse in prices of rough diamonds, which plummeted up to 35%, especially in the late summer and early fall.
Diamond producers, including De Beers — the largest by value —, and Petra Diamonds (LON: PDL) have suffered the effects of high inventory in the midstream.
Selby, who joined Lucapa in 2014, was appointed MD last month following a stint as interim CEO in August and September, replacing Stephen Wetherall who announced his resignation in July. Selby was previously chief operating officer of the company,
Lucapa has two producing mines in Africa: the 40%-owned Lulo mine, in Angola, and the Mothae mine in Lesotho, in which it has a 70% interest.
Cecilia Jamasmie | November 20, 2023 |
Merlin diamond project with Excalibur (foreground), Luanfal, Palomides, and Sacramore pipes. (Image courtesy of Lucapa Diamond.)
Australia’s Lucapa Diamond (ASX: LOM) has put the feasibility study for its Merlin project in Australia’s Northern Territory on hold due to what it called “unfavourable capital market and diamond price environments”.
The company it will now focus on assessing a smaller scale, lower cost path to development of the mine, which was once thought to have the potential to become Australia’s biggest commercial diamond operation.
Lucapa had originally expected Merlin to yield 2.1 million carats over its 14-year mine life, or about 153,000 carats a year.
The company, debt-free since July, said the alternate study will examine using available resources, such as the trial mining plant and front-end scrubber, to get Merlin into production.
“For the next 12 months we will focus on further strengthening our balance sheet. Rather than raise capital to fund the original Merlin development, we will focus on a lower cost pathway to development using existing resources,” managing director Nick Selby said in the statement.
The diamond market was one of the great winners of the global pandemic, as stuck-at-home shoppers turned to diamond jewellery and other luxury purchases. Sales this year have declined on the back of inflation in the US, by far the sector’s most important market, and China’s slowdown.
The drop in demand for polished diamonds, down about 20% this year, has triggered an even bigger collapse in prices of rough diamonds, which plummeted up to 35%, especially in the late summer and early fall.
Diamond producers, including De Beers — the largest by value —, and Petra Diamonds (LON: PDL) have suffered the effects of high inventory in the midstream.
Selby, who joined Lucapa in 2014, was appointed MD last month following a stint as interim CEO in August and September, replacing Stephen Wetherall who announced his resignation in July. Selby was previously chief operating officer of the company,
Lucapa has two producing mines in Africa: the 40%-owned Lulo mine, in Angola, and the Mothae mine in Lesotho, in which it has a 70% interest.
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