Editor’s Note
This article examines the pivotal role of Antwerp in the global diamond trade and the potential impact of sanctions on Russian gemstones, highlighting the growing unease within the industry.
The Belgian port city of Antwerp is one of the world’s most important trading hubs for gemstones. Nearly 90 percent of rough diamonds from Russian mines are traded in this city on the Scheldt River – so far completely unaffected by sanctions. This could now change, reports RND correspondent Damir Fras. Fear is running high in the diamond district.
Brussels. A newspaper wrote that the Russian war of aggression against Ukraine had sent shockwaves through the streets of Antwerp’s diamond district. Yet nothing has happened. Not yet, one must qualify.
For at least half a millennium, diamonds have been bought and sold in this Belgian port city. Over the centuries, Antwerp has become one of the most important trading centers for these gemstones.
Today, this is especially true for shimmering stones that originate from Russian mines. Russia is the world’s largest producer of diamonds. And 86 percent of Russian rough diamonds find their way to Antwerp to be traded there. This is an extremely lucrative business. Last year, traders generated approximately 34 billion euros in revenue. About 5 percent of Belgian exports are attributable to the diamond business.
The business was going so well that the Antwerp World Diamond Centre (AWDC) traders’ association and the Russian mining company Alrosa renewed their cooperation agreement as recently as December 2021. Warm words were exchanged.
But since the Russian army invaded Ukraine at the end of February and the EU imposed sanctions on Russia, the mood at the diamond exchange has been subdued. Trader spokesman Tom Neys warned that sanctions could cause more damage in Antwerp than in Russia:
Neys was referring to trading hubs in India or Dubai.
As mentioned, nothing has happened yet. Although the EU has banned the export of luxury goods to Russia, it has not banned the import of diamonds from Russia. Not yet.
But the UK has already placed Alrosa on its sanctions list. The US government has also banned the import of Russian diamonds. Currently, diplomats and lawyers in the EU are considering a fifth sanctions package against Russia. It is possible that this could also hit the Antwerp diamond exchange.