Editor’s Note
This article details the EU’s latest sanctions package against Russia, which notably introduces the first-ever restrictions on the Russian diamond trade. The measures aim to close loopholes by implementing a traceability system to prevent the circumvention of sanctions via third countries.
The European Union approved a new round of sanctions against Russia on Monday, the 12th round in response to the military aggression against Ukraine. For the first time, it includes restrictions on the diamond sector after months of preparation, which involves the implementation of a traceability system to ensure that Russian polished diamonds are not traded in third countries.
They have taken the step of prohibiting “the direct or indirect import, purchase, or transfer of diamonds originating from Russia.” The regulation will apply from January 1, 2024, to non-industrial diamonds originating from Russia, as well as those exported from or in transit through Russia, and Russian diamonds cut or polished in third countries.
The indirect ban on the import of Russian cut diamonds will affect jewelry incorporating diamonds of Russian origin. This measure will be implemented progressively from March 1, 2024, and will be fully in force by September 1, 2024. In a statement, the Council justified this measure by the need to deploy a traceability mechanism in Belgium, which will apply to the entire EU, to allow for the effective enforcement of the ban on Russian diamond trade and minimize market disruptions.
This step comes after close collaboration between the European Commission and Belgium to establish a mechanism guaranteeing the origin of diamonds, and following a visit by a G7 technical team to Antwerp in mid-November to test this mechanism. The European Commission explained in a statement that this step is part of a coordinated action aimed at cutting off an important revenue stream for Moscow, estimated at 4 billion euros.