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The next round of European sanctions against Russia is being worked on and could be proposed by the end of the week. Several countries are asking for Russian diamonds to be included in the text that will be proposed, against the opinion of Belgium, whose economy is closely linked to that of the precious stone.
The future of Russian diamonds has been on the table since the start of the war, but so far the gemstone has managed to escape the European cleaver. Today, there are not many Russian “products” left to sanction, so the noose is tightening. Europe could join the United States, which was the first to ban the sale of Russian diamonds in the spring. In any case, this is what five countries, Ireland, Poland, Lithuania, Estonia and Latvia, want. But the negotiations promise to be difficult because for the decision to be effective it requires unanimity. And at least one state has clearly come out against it, Belgium.
The Belgian economy addicted to diamonds
Diamonds represent 15% of Belgian exports outside the European Union. 84% of rough diamonds marketed in the world and 50% of polished diamonds pass through the stronghold of Antwerp. 25 to 30% of the diamonds that pass through the Flemish city come from a mine in Alrosa. Figures that explain the position of the Belgian Prime Minister, reiterated at the conference of diamond dealers held in mid-September in Antwerp (FACETS 2022). Partisan of a “free market”, Alexander De Croo is against sanctions which would cause ” big losses to his country.
But after seven months of war, the pressure is growing. Transparency International has taken up the subject and on Monday joined its voice to the Europeans who want to blacklist Alrosa and his boss. Sergei Ivanov, son of Vladimir Putin’s former chief of staff, has already been sanctioned by the United States, and the United Kingdom since the spring.
Industry promises more transparency
As for the big players in the industry who are looking to improve their image, the situation is likely to become increasingly difficult to hold. They reaffirmed in Antwerp, 15 days ago, their desire to ” building a more transparent industry at the service of the consumer, while recalling that if sanctions had been taken, the sector would be in crisis today. One out of four diamonds sold in the world comes from the Alrosa mines and doing without it is obviously still a headache for luxury jewellers.