Engagement rings are already one of the most expensive purchases that many people make in their lives.
But costs could skyrocket if new rules aimed at halting the trade in Russian diamonds come into effect early next year, experts warn.
A typical ring is worth between £1,900 and £2,000.
But the cost of the gemstones could rise by ten percent or more if the sanctions plans are considered by the G7, leading industry sources told This Is Money.
The cost of engagement rings could rise by 10% due to proposed sanctions aimed at halting the trade in Russian diamonds
This could also increase the cost of other jewelry such as earrings and necklaces.
Belgium has made proposals to analyze diamonds to check they do not come from Russia and upload them to an online tracing system.
But the plan would impose “significant” costs on ordinary consumers, said Ronnie VandeLinden, president of the International Diamond Manufacturers Association and vice chairman of the World Diamond Council.
There are fears that additional taxes could be levied on the stones and that the testing could cause delays in the supply chain – both of which would increase the price of diamonds.
Belgium claims its rules are better at detecting Russian diamonds than others.
“The proposed G7 plan for sanctions against Russian diamonds, introduced by Belgium, will undoubtedly hit the jewelry trade very hard if implemented,” VandeLinden said.
“It will increase costs; Ultimately we will have to pass on the extra costs to the consumer.
“This means that we expect diamond jewelry prices to increase significantly if the G7 implements this plan.”
While experts agree that Russia should face sanctions following its invasion of Ukraine, they say alternative plans have not been fully considered.
These were based more on statements from suppliers that diamonds did not come from Russia – a faster system favored by African countries.
Russia is the world’s largest producer of diamonds, while other countries include Botswana in southern Africa, Canada, the Democratic Republic of Congo and South Africa.
African diamond mining countries such as Botswana and South Africa are particularly concerned that the additional costs and delays could cause irreparable damage to their economies.
While they support the sanctions, they say this particular strategy to track and limit sales would do more harm than good.
Belgium also has the largest stake in the industry in the European Union, as the city of Antwerp is a major hub for diamond cutting.
Billions of pounds of diamonds pass through the district and are traded there every year.
A Belgian official said it was “unlikely” that his plans would cause “a price increase of somewhere in the region of” 10 percent or more.
They added that up to 70 percent of the world’s rough diamonds would be shipped to Antwerp under the plan, as Russian production would not be included – which is less than the 80 percent produced today the city flows.
They said: ‘Despite current sanctions in Britain and the US, Russian blood diamonds continue to enter Western markets.
“Belgium’s proposal aims to eliminate all possible circumvention plans that could allow the continued trade in Russian diamonds and thus effectively put an end to the financing of the war in Ukraine through the trade in Russian blood diamonds.”
The official added: ‘The principles underpinning the Belgian proposal are the only verifiable system that will give the jewelery sector and major retail brands the credibility to reassure their customers that they will no longer sell products containing blood diamonds.’