Bling-bling sanction
EU bans import of Russian diamonds
January 1, 2024, 11:29 p.m
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Almost two years after the start of the war, Russia is not allowed to import diamonds or diamond jewelry into the European Union. This means Moscow will lose an important source of income. But EU member Belgium could also take the measure.
Diamonds and diamond jewelry from Russia have no longer been allowed to be imported into the European Union since the beginning of the new year. This is provided for by the sanctions adopted in December because of Russia’s war of aggression against Ukraine. The measure is intended to deprive the government in Moscow of an important source of income and thus also limit its ability to finance the war against Ukraine. The EU Commission recently estimated Russia’s income from the sale of diamonds at around four billion euros per year.
During the period from March 1st to September 1st, an indirect import ban on Russian diamonds processed in third countries other than Russia will also be gradually introduced. The transition period is intended to allow the introduction of a traceability mechanism that will keep disruption to market participants to a minimum. Anyone who imports diamonds into the EU will in future have to provide proof of the country of origin of the diamonds or diamond products.
Billions in revenue
The reason why a ban on the import of Russian diamonds was only decided almost two years after the start of the war was, among other things, the initial resistance from Belgium. The Flemish port city of Antwerp has been one of the world’s most important diamond centers since the 16th century. Russia is considered the world’s largest producer of rough diamonds. In 2021, the state diamond miner Alrosa had revenues of 332 billion rubles (around 3.4 billion euros).
In addition to the diamond ban, the latest EU sanctions package against Russia also included an import ban on raw materials for steel production and processed aluminum products as well as export restrictions on goods such as lithium batteries, thermostats and certain chemicals. There is also a new import ban on liquefied petroleum gas (LPG) from Russia, which, according to the Commission, affects imports of more than one billion euros per year. According to a grandfather clause, existing contracts should also be affected after a maximum of twelve months. For example, there has been a far-reaching import ban on crude oil, coal, steel, gold and luxury goods as well as punitive measures against banks and financial institutions for a long time.
Further information about the Ukraine war can be found here