European Union (EU) and G7 countries are on the verge of implementing a comprehensive ban on Russian diamonds in retail markets within nations already sanctioning Kremlin assets, according to statements from Belgian Prime Minister Alexander de Croo. This substantial step is poised to strike a severe financial blow to Vladimir Putin’s war efforts in Ukraine, as an estimated 90% of the world’s diamonds traverse through the Belgian city of Antwerp. After nearly a year of painstaking efforts to establish a reliable system for tracking the origin of diamonds sourced from Russia, the international community is gearing up for a decisive move, intending to enforce the ban on so-called “blood diamonds” as of January 1, 2024.
A Decisive Move Against Putin’s Revenue Stream
Speaking alongside Ukrainian President Volodymyr Zelenskiy during a joint press conference at NATO headquarters in Brussels, Alexander de Croo stressed the gravity of the impending diamond embargo. De Croo, recognizing the critical role Belgium plays in the global diamond trade, highlighted the primary objective of cutting off Russian dominance from retail markets. He stated, “The best way to do that is with the full traceability system to exclude Russian diamonds from all the markets. We are doing [this] together with the EU and the G7 and we are very close to finalizing such a full traceability system.”
Efforts to thwart the diamond supply have been complicated due to Russia’s adeptness at circumventing sanctions. While the EU sanctions list has expanded to encompass Russian coal, gold, and caviar, diamonds have continued to flow into global markets. Nevertheless, the international community, led by Western nations, has been diligently collaborating to establish a global prohibition on the sale of Russian diamonds, ensuring they do not find their way into shops through any backdoor channels.
Antwerp’s Vital Role in Global Diamond Trade
Belgium’s pivotal role in this endeavor cannot be overstated. Antwerp, often referred to as the “Diamond Capital of the World,” is the entry point for approximately 90% of the world’s diamonds. However, the Belgian government has faced considerable pressure from the diamond industry, which expressed concerns that any sanctions might merely divert the lucrative trade from Antwerp to Dubai. The Belgian Prime Minister’s backing for the embargo is deemed crucial in ensuring its success.
Tracing Diamonds Back to Russia – A Year-Long Effort
The year-long effort to accurately trace the origin of diamonds sourced from Russia has been a significant challenge. Russian circumvention of sanctions and the intricate global supply chain have made it difficult to definitively identify Russian diamonds in the market. This endeavor involved extensive collaboration between experts from the G7 nations and Belgium. Discussions about the potential embargo on the importation of Russian-mined diamonds took place during the recent G7 summit in India. It is estimated that around one-third of the world’s diamond supply, valued at approximately €4.5 billion (£3.8 billion), originates from Siberian quarries, and prior to the Ukraine invasion, 25% of rough diamonds passing through Antwerp came from Russia.
The impending ban on Russian diamonds is not only a significant financial blow to Putin’s war machine but also a testament to the determination of Western nations to stand united against Russia’s aggression. With the finish line in sight, the global community is on the brink of enforcing a landmark prohibition that will not only uphold the sanctity of the diamond trade but also send a powerful message to those who seek to undermine global stability and peace.
