Rosalind Evans
In a significant development, Belgium’s prime minister has announced his country’s support for banning Russian diamonds. This move comes as a part of the sanctions aimed at President Vladimir Putin’s government in response to its war against Ukraine. Belgium’s stand on this matter is crucial given its pivotal role in the global diamond trade.
The announcement was made during the visit of Ukrainian President Volodymyr Zelenskyy to Brussels. Zelenskyy has consistently called for such sanctions ever since Russia’s invasion of Ukraine began in February 2022. The world’s attention has been on the Group of Seven advanced economies and the EU as they strategized on ways to trace and restrict the Russian diamond trade, ensuring it doesn’t bypass these sanctions. With Russia exporting nearly a third of the world’s rough diamonds, amounting to approximately $4 billion annually, the stakes are high.
The Prime Minister of Belgium, Alexander De Croo, when questioned about the timeline for the enforcement of the ban, stated, “The goal is … January 1st of 2024.” De Croo highlighted Belgium’s significance in the diamond industry by referencing The Antwerp World Diamond Centre data. The center reported that 84% of all rough diamonds mined worldwide are traded in Antwerp, Belgium, making it a significant gateway for Russian diamonds to the global market.
De Croo, while addressing the gathering with President Zelenskyy by his side, emphasized the need for a comprehensive strategy. He mentioned, “It has taken some time because we want to avoid that diamond’s ban would be circumvented.” Highlighting the broader implications, he added, “If you only do it on the wholesale markets, then it will be traded to other diamond centers in the world…This full traceability and this full banning on the retail markets is the only way to ensure that Russia is not financing the war anymore with those diamonds.”
Interestingly, while other sectors of the Russian economy have felt the heat of the EU’s measures, diamond imports from Russia to the EU have remained unaffected so far. In Belgium, the diamond industry is not just about luxury but livelihoods. It accounts for 6,600 direct and 26,000 indirect jobs. The annual trade tally stands at a massive 37 billion dollars. The significance of diamonds in Belgium’s export framework is evident, as they constitute about 5% of total exports to the EU and 15% to regions outside the European bloc.
Belgium’s support for a ban on Russian diamonds marks a pivotal step in the ongoing geopolitical conflict surrounding Ukraine. As nations globally grapple with curtailing Russia’s financial muscle, the diamond industry’s critical role emerges as both a challenge and an opportunity. With Belgium’s firm stance, the world watches closely, hoping for a resolution that ensures peace and stability in the region.
