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Do European diamond dealers have an alternative to Russian diamonds? Russia is the leading diamond producer, but in Belgium several voices have been raised to call for a boycott. A subject that could be raised again by the Ukrainian president who speaks this Thursday at 2:15 p.m. in front of the Belgian Parliament.
« Asking diamond dealers to do without Russian diamonds is a bit like being told that the drinking water was of Russian origin, and that you should no longer drink it! It is with these words that a Parisian trader summarizes the dependence of the sector vis-à -vis Russia.
In volume, the country is the leading exporter of rough stones. The Russian group Alrosa supplies the diamond stronghold of Antwerp in Belgium with 25 to 30% of its needs. He is also the major supplier of luxury jewelry in Place Vendôme in Paris. In this context, anticipating possible import restrictions is enough to give jewelers and watchmakers headaches. Quite simply, because there is really no alternative to the Russian diamond.
â–º Also to listen: Sanctions against Russia: “We are going to have an increasingly inflationary economy”
Antwerp against a Russian diamond boycott measure
Some professionals may be able to live on their stock. The others will have to reduce their offer… or source elsewhere, but without the same conditions of transparency, warns the AWC (Antwerp World Diamond Center), the structure that oversees diamond professionals in Antwerp. “ The diamond that does not pass through Antwerp will go to Dubai, where the traceability of the stones is far from the same “, explains Tom Neys the spokesperson for AWC. Russia will continue to sell its diamonds in India and China as well, while Antwerp will lose almost a third of its activity.
If there are restrictions, they could therefore be detrimental to Belgium more than to Russia. And this is not the philosophy of a sanction, the Belgian Prime Minister recently recalled. It is unlikely, however, that European jewelers will circumvent the rule if it were to come into force. Because “ their brand image is often worth much more than the Russian diamonds they would venture to sell “explains one of our interlocutors.
Calm market, in a very uncertain context
The main impact on the market could be the price. The market is slowing down at the moment, as traders are playing it safe, but according to several experts, the context is a harbinger of higher prices.
The turbulence affecting the Russian Alrosa, whose representative in the United States temporarily closed its offices on March 10, will not be without consequences for the group’s activity. They could also indirectly benefit De Beers, the other diamond giant.