US says NO to lifting sanctions on Zimbabwe diamonds

The United States will not lift sanctions on Zimbabwe’s diamonds any time soon, State Department spokesperson Jen Psaki said yesterday.

She was responding to a question about the US’s response to a call by the Kimberley Process last week on the US to lift sanctions on Zimbabwe’s diamonds to assist in the country’s recovery programme.

The European Union lifted its sanctions on the diamonds following pressure from Belgium which was losing out to Indian and Chinese diamond traders.

The EU move is likely to have little impact as the United States controls the transfers of funds in United States dollars.

Zimbabwe has lost an estimated US$1.9 billion by trying to circumvent United States and European Union sanctions on its diamonds which were cleared by the KP three years ago.

Psaki said the United States still had concerns about revenue transparency, the treatment of artisanal miners and the freedom of local communities and civil society.

“..We of course review sanctions at all times, but I don’t have any prediction or update for you on anything or any expected change,” she told the reporter.

Full question and answer:

QUESTION: Zimbabwe.

MS. PSAKI: Zimbabwe, okay. Can we – are there any more on Syria? Okay.

QUESTION: The chairperson of the Kimberley Process – the Kimberley Process’s meeting this week suggested that the U.S. should consider removing sanctions on diamonds in Zimbabwe. Do you have a response to that? Do you think it’s a good idea? Do you think that Zimbabwe’s moving closer to being acceptable in your eyes to remove sanctions? Is there any process in place in Washington that’s looking at this issue?

MS. PSAKI: Well, Zimbabwe’s adherence to the Kimberley Process Certification Scheme’s minimum requirements remains a priority for the United States. We remain concerned about revenue transparency, treatment of artisanal miners, and the freedom of local communities and civil society organizations to operate peacefully in Zimbabwe’s diamond mining areas. In terms of – and so we wish to see increased transparency in revenue flows from diamonds.

In terms of specific sanctions, as I’m betting you already know, we have targeted sanctions on 113 individuals and 70 entities found to have been undermining democracy in Zimbabwe. And we of course review sanctions at all times, but I don’t have any prediction or update for you on anything or any expected change.

QUESTION: And – but there is some travel by, I think, is it a deputy assistant secretary, I think next week possibly? I don’t want to announce it here – (laughter) – but are there mechanisms in place whereby you’re looking at what’s going on in countries and make new assessments on that basis?

MS. PSAKI: Certainly, as a part of any trip or visit, we take a look at a range of programs and a range of concerns. I’m not aware of the trip. I’m happy to check with them and see if that’s something that is in process for next week.

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