Editor’s Note
This article examines the recent extension of Western sanctions to include Russian diamonds, a sector previously exempt despite its significant revenue contribution to the Kremlin. It highlights the strategic and ethical implications of targeting these exports in response to the ongoing war in Ukraine.
In the context of Russia’s invasion of Ukraine, the country of Vladimir Putin has been sanctioned multiple times by the West. Coal, oil, steel, timber, and gold—a large portion of exports have been targeted. But until now, its diamonds had been spared—’blood diamonds’ that help fuel the war being waged in Ukraine. As the world’s leading exporter of these precious stones, Russia earns several billion euros annually from them (€4.1 billion in 2021, according to trade data). But this is set to change.
Indeed, as explained by the Financial Times, the G7, a group of seven countries (Canada, the United States, Japan, the United Kingdom, France, Germany, and Italy) with the world’s most developed economies, had committed prior to the summit to “work collectively on new measures.”
This plan, which aims to severely limit the resale of Russian diamonds, will involve the development of an inspection and tracing mechanism for these precious jewels. A first tier of sanctions against Russian diamond dealers, which will allow the G7 to subsequently act in a more targeted and effective manner.
However, as our colleagues point out, this plan risks penalizing a large part of the global industry, notably Belgium, Dubai, and India, the three largest importers of Russian diamonds.
stated Anoop Mehta, President of the Bharat Diamond Bourse in Mumbai. According to him, the entire trade of these precious stones in India employs about one million people.
As for Belgium, more than 1,500 companies, mainly clustered in Antwerp, the world’s diamond capital, participate and carry significant weight in this trade, noted Le Figaro. Last April, however, Brussels announced it would soften its position.
To send a “strong signal” to Ukraine, members of parliament indeed voted for a resolution advocating a ban on imports of Russian diamonds into the European Union. Conversely, Antwerp has explicitly recommended that a traceability mechanism be established.
