Diamonds being analyzed at iTraceiT, a Belgian company using digital tracing technology, in Antwerp, November 21, 2023 (AFP/François WALSCHAERTS)
In Belgium, the world of diamond trading is preparing for a ban on Russian precious stones in the EU, as part of a new package of sanctions linked to the war in Ukraine which must soon be approved by the Twenty-Seven.
In the diamond district of Antwerp, through which 86% of the world’s rough diamonds pass, laboratories are turning to Blockchain-type technologies to prove that their precious stones come from mines in Africa, Australia or Canada, but not from Russia .
Within the EU, Belgium’s voice was heard when it came to imposing new sanctions on Russia, this time hitting its lucrative diamond trade, with which Moscow is accused of financing part of of his war against Ukraine.
To avoid penalizing its stronghold in Antwerp, the Belgian government called for sanctions applicable at the international level. History that other high places of trade like Dubai or India are not recovering the markets lost by Russian exporters in Europe.
As negotiations on EU sanctions progressed, G7 powers intervened and the world’s leading industrialized democracies agreed on a global ban.
This is where the digital tracing technology developed by the Belgian company iTraceiT claims to be one of the solutions for market players.
– QR code –
“It is important that any traceability solution, or any protocol proposed to deal with these potential sanctions, concerns the entire industry and is supported by all diamond centers,” Frederik Degryse, CEO of iTraceiT, explains to AFP.
In his laboratory, Sandiah Kangoute, a company executive, explains this computer tracking system.
Frederik Degryse, CEO of iTraceiT, in Antwerp, November 21, 2023 (AFP/François WALSCHAERTS)
When at the time of extraction the stones are slipped into bags, each of them is assigned a QR code, which thus defines a unique classification assigned for all stages of the trade… Since the purchase of the bags of rough diamonds, to sale in jewelry stores, including the cutting and polishing of the stones, she explains.
“I see here that the starting point is in Canada, before the journey which brought him to France,” describes Ms. Kangoute, scanning a small package of cut diamonds.
The logic is that the QR code system ensures the traceability of diamonds and renders any fraudulent exchange project obsolete.
Using a code reader, industry workers can access files attached to these unique codes and add new ones, such as purchase receipts, export licenses and certificates of authenticity.
– New set of sanctions –
The European Commission has adopted a draft sanctions package – the 12th package since the invasion of Ukraine in February 2022 – which must be submitted for approval to the 27 member countries in the coming days. Unanimity is required for their entry into force.
According to a copy of the text consulted by AFP, it is a question of banning the trade in diamonds mined in Russia, transiting or exported from this country, as well as that of Russian diamonds cut and polished in third countries.
Diamonds being analyzed at the iTraceiT premises, in Antwerp, November 21, 2023 (AFP/François WALSCHAERTS)
The ban would apply to “non-industrial natural and synthetic diamonds as well as diamond jewelry” from January 2024, while the ban on all imports of Russian diamonds cut or polished in third countries would be phased in between March and September. .
The EU is also seeking to improve the effectiveness of sanctions taken against Russian oil, and the Commission is proposing to extend these sanctions to LPG, liquefied petroleum gas, butane and propane, used in particular for heating .
According to Frederik Degryse, if there is suspicion in a trade about the Russian origin of certain stones, exporters can use the iTraceiT system to provide additional evidence.
“Each package or each diamond will have an internal reference, which is linked,” underlines the Belgian leader. “All the partners we work with are audited regularly”, and “the tool will allow these auditors to more easily access the traceability of all diamonds”.
© 2023 AFP
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