【Brussels, Be】No Diamond is Worth the Suffering

Since the beginning of Russia’s brutal war of aggression against Ukraine one year ago, the European Union has already adopted nine sanctions packages. The sanctions include a wide range of measures, such as restrictions on trade and financial transactions, the freezing of assets of Kremlin-affiliated individuals and companies, or import bans on certain goods, including coal, crude oil, and gold.
However, there is a notable exception: Russian diamonds.
Diamonds have always been a symbol of wealth and success. As gemstones, they are particularly in demand in North America and Europe – both regions account for approximately 70 percent of the global sales market. Russia possesses the world’s largest mining area for precious stones.

The Russian diamond mining business is lucrative and is 90 percent carried out by the Alrosa corporation – the world’s largest diamond producer – in which the Kremlin holds a large stake. According to the International Trade Centre, exports of Russian diamonds amounted to 4.5 billion US dollars in 2021.
The USA have long restricted trade with Russian diamonds. They imposed sanctions against Alrosa and its CEO Sergei Ivanov, who belongs to Putin’s innermost circle, on the very first day of the Russian invasion. The company maintains close ties with the Russian navy and has, among other things, financed a combat submarine of the same name. Furthermore, in March 2022, the USA banned the import of diamonds extracted or processed in Russia.
Despite pressure from countries such as Poland, Ireland, and the Baltic states, the European Union has not yet taken comparable steps. This is primarily due to Belgium’s prominent role in the global diamond industry.
Antwerp has served as the world’s diamond capital and main trading hub for diamonds entering Europe since the 15th century – a quarter of them from Russia. Due to this dependency, Belgium has resisted calls from other EU member states to ban the import of Russian diamonds.
It is long overdue for the EU to adopt an import ban on Russian diamonds as well as sanctions against Alrosa and its CEO. Furthermore, EU sanctions against Russian rough diamonds must be designed so comprehensively that any subsidiaries and subcontractors of diamond companies can no longer trade in gemstones originally mined in Russia. This also applies to diamonds originally mined in Russia and then cut or polished in a third country.

In addition, the EU must cooperate with other international partners and negotiate binding agreements on trade in Russian diamonds. Otherwise, Russia could circumvent the sanctions by shifting its exports to trading hubs such as Dubai and Mumbai.
In the long term, the diamond industry must establish traceability systems regarding the country of origin of diamonds. Importers would have to prove that their diamonds do not come from Russia or other conflict regions. Only in this way can we prevent diamonds from conflict regions from being sold freely in the EU in the future.
It is incomprehensible that the EU continues to yield to Belgium’s self-serving interests. Everyone is aware that Russia finances its war machinery primarily thanks to revenues from the export of raw materials and natural resources. Therefore, it is necessary for the EU, alongside the further essential expansion of military, humanitarian, and financial support to Ukraine, to cut off any source of revenue for Russia. Only in this way can the Russian government be forced to the negotiating table and this cruel war be ended as quickly as possible.
On this day, Valentine’s Day, when love is celebrated worldwide, we appeal to EU governments to finally sanction Russian diamonds. No Russian diamond is worth the unspeakable suffering inflicted on Ukrainians.
Mickaël Roumegoux Rouvelle is a Project Manager at Transparency International Germany e. V.

Nona Ratchana Olbrich works for the EU office of Transparency International in Brussels.