The European Union expanded the list of sanctions against Moscow this Wednesday: the diamond company Alrosais considered the largest in the world and represents 90% of Russian diamond production. Since it is a company co-owned by the state, the income from trading in these gemstones contributes to this finance the Kremlin's deadly war machine against Ukraine. According to Brussels calculations, this trade involves a lot 4 billion euros per year.
In addition, the European Union has also placed the company's CEO on the sanctions list. Pavel Alekseeich Marinynchev, The You do not need a visa to enter the EU And whose assets on European soil are frozen. The European Union's penalties against Russia almost cover it 1,950 people and companies since the beginning of the conflict.
For this reason, banning sanctions on Russian diamonds was a difficult step Belgian veto, with important interests in the industry. “You can do more to help us drive out the occupiers and win valuable peace. I think that Peace is more valuable than diamond deals“said the President of Ukraine Volodymyr Zelensky in his telematic intervention before the Belgian Federal Parliament on March 31, 2022, almost two years before this measure finally comes into force.
Although at the beginning of the war the EU decided to sanction the export of luxury products, with the aim Beat the oligarchs' way of life And that also included diamonds and other precious stones. The most difficult debate was that of imports. The reason is quite simple: the majority of diamonds marketed in the EU and then sold to the rest of the world come from third countries and are only cut and polished on European soil.
Russia is just doing it the leading exporter of rough diamonds of the world thanks to its mines in Siberia and its exploitation is carried out by Alrosa. According to the American consulting firm Bain & Company, Vladimir Putin's country accounts for 32% of world trade (116 million carats), followed by Botswana (19%), Canada (15%), the Democratic Republic of Congo (12%) and southern Africa ( 8%) and Angola (7%).
Most of these gemstones are then polished in the Belgian city Antwerp, the second most important in the country after Brussels. According to the Flemish government, in 2021 Moscow exported these uncut gems worth 1.8 billion euros. The port city has been the center of the diamond trade for centuries (86% of total global pure diamond trade) and houses 1,600 registered companies dedicated to this area. The Diamond District of Antwerp, located near the imposing Central Station, has actually become another tourist attraction and its visit is recommended in all travel guides. Although the commercialization of diamonds in this city is traditionally associated with the Jewish community, it is estimated that people of 70 different nationalities currently work in this microcosm, which also includes Russians, Chinese, Indians and Lebanese.
Belgium's veto
Until last December, Belgium had always defended that the suppression of imports would deal a serious blow to the city since then A quarter of these uncut gemstones that arrive in the port city are of Russian origin and they might even get lost 10,000 jobs. The Diamond Center (AWDC) also justified its opposition to a diamond embargo by saying that Moscow could easily circumvent this sanction by redirecting its exports of rough diamonds to other parts of the world, which would then end up being sold on the ground. European.
Belgium lifted its veto in December as part of the 12th sanctions package The G7 countries impose a coordinated embargo through a traceability system that locates the origin and transport of rough diamonds. The embargo on these gemstones includes the import of industrial diamonds mined, processed or manufactured in Russia. According to the text agreed by the G7 members, imported diamonds will be banned no later than January 1, 2024 and this embargo will be extended to Russian gemstones cut in a third country from March 1, 2024 and from September 1 2024 on diamonds, jewelry and watches with lab-created diamonds.
“The European Union will continue to support Ukraine for as long as necessary,” said the highest representative of community diplomacy, Josep Borrell, when he announced this Wednesday the inclusion of Alrosa in the European sanctions system.