G7 to announce ban on Russian diamond trade. (Source: Reuters)

"The G7 has decided in principle to link origin to diamond quality but is still working on the details," the official said.

Speaking to reporters, Belgian officials said the ban will come into effect in January 2024.

The new embargo is expected to require strict and costly tracking of diamonds of all sizes, which could take years and drive up prices, according to the New York Times .

The new measures will also target many individuals involved in energy, metals and shipping trade.

The Russian diamond industry's approximately 30% market share is currently of great importance for the balance of the global diamond market.

Efforts to reduce Russia's income from diamond exports, which are based on Washington's current sanctions against Russian company Alrosa - the world's largest diamond miner - are the subject of discussion among G7 leaders.