Editor’s Note
This article examines the profound impact of geopolitical sanctions on Antwerp’s historic diamond district, highlighting how global trade policies are reshaping a centuries-old industry.
Antwerp, Belgium, renowned as Europe’s ‘Diamond Capital’, boasts formidable diamond cutting technology and over five centuries of diamond processing history, making it a globally famous diamond processing and trading hub. The city’s famed Diamond Street, Hoveniersstraat, has long been a source of pride for Antwerp. However, recently, the diamond trade here has been tarnished by Western sanctions against Russia.
CCTV reporter Song Liang reported from the scene: “I am now on Europe’s famous Diamond Street. The site is a bit messy due to ongoing road construction. But on this street, which is just over 100 meters long, four diamond exchanges are densely located. Hundreds of billions in diamond transactions are completed here annually. At its peak, nearly 2,000 companies were based here. However, today we are seeing some unexpected changes. Now, every few steps, you can see ‘For Rent’ signs.”
Why is Diamond Street, once where every inch of space was precious and offices were hard to come by, now plastered with rental information? The reporter visited the ‘Diamond Square’ located in the core section of Diamond Street and contacted the building owner, Philippe Schwartz.
Philippe showed the reporter several vacant rooms, ranging from 20 to 120 square meters. He said that out of about 100 offices in the entire building, roughly 30 are currently empty, with most having moved out in the last year or two. Situated diagonally opposite ‘Diamond Square’ is the Antwerp World Diamond Centre (AWDC), the official representative of the Belgian diamond industry. The former Chief Representative for the Chinese market at the AWDC told the reporter that many companies have relocated similarly.
When asked by the reporter if that client had left, Jiang Jun confirmed: “He left, he’s gone. But they will open an office in other diamond centers.”
Russia is one of the world’s largest diamond producers and home to the world’s largest diamond mining and processing company. Nearly 40% of Belgium’s diamond trade involves Russian diamonds. Due to a series of EU sanctions against Russia, many companies have chosen to leave Europe. Similarly, Jiang Jun, who worked in the Belgian diamond industry for over a decade, also chose to resign.
The exodus of diamond traders is not an isolated case, as clearly shown by data charts from the National Bank of Belgium. Compared to 2020 and 2021, following the outbreak of the Russia-Ukraine conflict in 2022, Belgium has experienced a significant and sustained net capital outflow, reflecting market panic. The departure of diamond traders has become an industry microcosm of capital flight from Belgium and even Europe as a whole.