EU bans imports of Russian diamonds
Almost two years after the start of the war, Russia is not allowed to import diamonds or diamond jewelry into the European Union. Moscow is thus losing an important source of income. But the measure could also affect EU member Belgium.
Diamonds and diamond jewelry from Russia may no longer be imported into the European Union since the beginning of the new year. This was stipulated by sanctions adopted in December due to the Russian war of aggression against Ukraine. The measure is intended to deprive the state leadership in Moscow of an important source of income and thus also limit its ability to finance the war against Ukraine. The EU Commission recently estimated Russia's revenue from the sale of diamonds at around four billion euros per year.
In the period from March 1 to September 1, an indirect import ban on Russian diamonds that have been processed in third countries other than Russia will also be gradually introduced. The transitional period is intended to allow the introduction of a traceability mechanism that will minimize disruption for market operators. In future, anyone importing diamonds into the EU will have to provide proof of the country of origin of the diamonds or diamond products.
Billions in revenue
One of the reasons why a ban on the import of Russian diamonds was only decided almost two years after the start of the war was Belgium's initial resistance. The Flemish port city of Antwerp has been one of the most important diamond centers in the world since the 16th century. Russia, in turn, is considered the world's largest producer of rough diamonds. In 2021, the state-owned diamond miner Alrosa had revenues of 332 billion roubles (around 3.4 billion euros).
In addition to the diamond ban, the latest EU sanctions package against Russia also included an import ban on raw materials for steel production and processed aluminum products as well as export restrictions on goods such as lithium batteries, thermostats and certain chemicals. There is also a new ban on imports of liquefied petroleum gas (LPG) from Russia, which, according to the Commission, affects imports of more than one billion euros per year. It will also affect existing contracts after a maximum of twelve months following a grandfathering clause. A far-reaching import ban on crude oil, coal, steel, gold and luxury goods as well as punitive measures against banks and financial institutions have already been in place for some time.
You can find more information on the war in Ukraine here
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Following the EU's ban on Russian diamond imports, businesses in Belgium may face challenges due to the country's historical relationship with the diamond industry. The EU sanctions, implemented in response to Russia's war of aggression against Ukraine, aim to deprive Moscow of an estimated 4 billion euros in annual diamond revenue. The ban on unprocessed diamonds from third countries is set to take effect from March 1, with a transitional period to introduce a traceability mechanism.
Source: www.ntv.de
