Editor’s Note
This article highlights a significant increase in the declared value of Russian diamond imports to Belgium in mid-2022, as reported by official data. This surge occurred despite international sanctions following Russia’s invasion of Ukraine, raising critical questions about sanctions enforcement and global trade flows.
According to the National Bank of Belgium, four months after the start of the Russia-Ukraine war, a significant spike was recorded in the commercial value of Russian diamonds. In June 2022, the value of diamond imports from Russia to Belgium amounted to 393.8 billion euros, according to data from Statista.
Russia has been subjected to various sanctions by the European Union since the start of the conflict, accumulating around 12,655 sanctions. However, this has not prevented Russian diamonds from continuing to flow into the EU. From stopping imports of Russian coal to eliminating most Russian oil, the European bloc has sought to pressure the Kremlin to desist from the war. Even Russian products such as gold, caviar, and vodka have ceased to be purchased, yet precious stones have not been subjected to any sanction.
The omission is striking, as the trade primarily affects Belgium, which has always indicated it would not block a ban. Ukrainian President Volodymyr Zelenskyy has morally pressured Belgians to prohibit the trade, as in March he addressed parliament saying that peace was worth “more than any diamond.”
Despite the fact that Russia’s diamond company, Alrosa, is controlled by the Kremlin, exchanges continue. However, Sergei Sergeevich Ivanov, the company’s chief executive, was among the first oligarchs to be sanctioned by the United States. Washington argues that his father, Sergei Borisovich Ivanov, is one of the men closest to Russian leader Vladimir Putin.
The United States banned the import of non-industrial diamonds from Russia, and in March the United Kingdom sanctioned Alrosa. But neither country trades precious stones on as large a scale as Belgium. Prior to the invasion of Ukraine, 25 percent of the rough precious stones arriving in Antwerp, Belgium, came from Russia. According to the National Bank of Belgium, in 2021 the country imported 1.8 billion euros worth of Russian diamonds and 1.2 billion euros in the first eight months of 2022.
Currently, the trade has experienced abrupt increases, such as in June when it nearly reached 400 million dollars, and seasons with sharp declines. In August 2022, Belgium imported 35.9 billion euros worth of Russian diamonds, but in the same month of 2021 it recorded 215.4 billion euros, an 83% drop.