Editor’s Note
This investigation reveals how Russian diamonds continue to enter Western markets via complex routes, highlighting a significant loophole in current sanctions and certification schemes.
An investigation by the Russian NGO Arctida has revealed that Russian diamonds continue to flow into Europe and the United States, despite sanctions imposed after the invasion of Ukraine.
Russia, which accounts for 25 to 30% of global rough diamond production, uses complex circuits to circumvent Western restrictions.
Even though the Kimberley Process certifies diamonds as “conflict-free,” it does not cover the war in Ukraine, and therefore many jewels sold in Europe or the United States may contain stones of Russian origin… unbeknownst to the consumer.
“Yes, yes, a thousand times yes! But… Is this diamond from Russia?” Such a question has probably never been asked in the entire history of marriage proposals accompanied by an engagement ring adorned with a solitaire. While the diamond remains the standard in the wedding ring market, its origin sometimes proves mysterious. And this stone, proudly displayed as a Western symbol of eternal love, may well have traveled part of the globe to escape the sanctions weighing on Russia’s jewels.
says Gwennhaëlle Barral, a lawyer at the Paris and Luxembourg bars and author of the article *Freezing Assets and International Sanctions on Diamonds: A High-Value Measure?* (Culture compliance). This is precisely what the investigation published by the Russian NGO Arctida shows, which claims that Russian diamonds continue to flow into Europe and the United States.
After the invasion of Ukraine, the United States and the European Union implemented sanctions aimed at preventing Moscow from financing the war through its diamonds. Because the country is a behemoth in the sector.
explains Avi Kravitz, a consultant and analyst specializing in the international diamond trade. Before the sanctions, exports of rough stones to Europe brought Russia nearly 2 billion euros per year.
These astronomical sums took some time to be targeted by Western sanctions, notably due to Belgian reluctance. Antwerp is indeed one of the world’s diamond hubs. In December 2023, the European Union finally adopted sanctions excluding Russian diamonds from its market, in partnership with the G7. A measure only effective from January 1, 2024. A hard blow for Russia, while
emphasizes Avi Kravitz.
Despite strong reactivity from the United States, which sanctioned the largest Russian diamond company (Alrosa) on the very day of the Russian invasion of Ukraine,
notes Gwennhaëlle Barral. The G7 had planned a system to track the origin of rough diamonds, which was supposed to be implemented on September 1, 2024. But the date has been constantly pushed back, and the EU now mentions… January 2026.
Amid these delays, Russia has developed particularly effective workarounds.
explains Avi Kravitz.
In a globalized economy, a diamond can quickly move from one country to another and end up labeled in a batch of “mixed origin.”
says Gwennhaëlle Barral. Moscow also uses Armenia, where nearly half of imported diamonds come from Russia. The country, which extracts very few stones itself, serves as a transit hub to more discreetly reinject Russian diamonds into the global market.
notes Avi Kravitz. This is why the Kimberley Process was created in 2003. Each batch of rough diamonds must have a certificate to ensure they do not originate from conflict zones – what are called “blood diamonds.” Russia, however, is not concerned, as its territory is not directly a conflict zone, even though its diamond market probably partly finances the invasion of Ukraine.
