Leaders' Statement On Russia: Crack Down On Sanctions Evasion, Diamond Ban

Leaders from G7 nations have released a joint statement with new measures to restrict Russian revenue following a meeting today attended by Ukrainian President Volodymyr Zelenskyy.

• The statement says the group will, "work to further curtail Russia's use of the international financial system to further its war in Ukraine."
• The group will step up efforts, "against evasion and circumvention of our sanctions and export controls measures."
• The group will, "commit to tightening compliance and enforcement of the price cap policy on Russian oil, including by imposing sanctions on those engaged in deceptive practices."
• The most significant new development is a, "direct ban on non-industrial Russian diamonds from Russia by January 1, 2024," and a, "ban on Russian diamonds from third countries targeting march 1, 2024."
• The leaders say: "We will explore all possible avenues to aid Ukraine in obtaining compensation from Russia, consistent with our respective legal systems and international law."
• That may include transferring frozen Russia sovereign assets to Kyiv - a plan proposed by House Republicans in their "Plan for Victory in Ukraine," but would likely encounter significant legal obstacles.
• Notably, the G7 statement does little to alter the price cap on Russia oil. Politico reported today that the price cap has failed to sufficiently restrict Russia’s oil revenue due to, “gaping loopholes.” Research, cited by Politico, notes that the scheme has cost the Kremlin, “$37 billion in export revenues, the equivalent of around two months of earnings this year… far less than those who designed the rules had hoped.”