May 06 2024, 08:10
How G7 and EU are weaponising diamonds and carbon:
In the wake of the Ukraine war, the West tried every trick in the diplomatic playbook to get India to loosen ties with Russia. After that strategy failed, it is using trade to force New Delhi's hand,.
India polishes 10 out of the 11 rough diamonds the world mines. It is a global monopoly the world envies. Since the West imposed sanctions on Russia following its invasion of Ukraine, the US and Europe have been fuming over India continuing to trade with Moscow, especially in crude oil.
Frustratingly, they cannot out of self-interest - stop India from buying Russian crude because Indian refineries ship the finished product, including diesel, to Europe which needs a regular supply of diesel.
Indian diamantaries had anyway stopped buying rough diamonds from Russia following Western sanctions, replacing them with roughs bought from the trading division of Anglo-American mining conglomerate De Beers for polishing and export.
But the G7's diktat to certify all rough diamonds at Belgium's new traceability centres from September means Indian exporters will have to ship roughs to Brussels before getting them back certified as not being of Russian origin before refining and exporting them. This will add to their overall costs.
While the G7's new diamond export rule is aimed at India, the world's largest processor of rough diamonds, the new carbon tax levied by the European Union (EU) is designed to penalise developing countries.
Called the Carbon Border Adjustment Mechanism (CBAM), the tax kicks in from 2026. But exporters of steel, cement and other products whose manufacturing process carries a significant carbon footprint have had to submit detailed documentation of their processes every two months starting from October 2023.
"US foreign policy has long been suffused with militarism, unilateralism, and hypocrisy. The problem goes far beyond Iraq. Think about Vietnam, Cambodia, Laos, Nicaragua, Serbia (1999), Afghanistan (both 1979 and 2001), Syria (the CIA-led attempt to overthrow Assad), Libya, and Ukraine (Yanukovych's overthrow).
"The UN Security Council should be forging a path to peace, one that is based on Ukraine's neutrality. But the UNSC has not even tried to find a negotiated path to peace.
source: et
May 06 2024, 08:10