The Belgian Parliament recently voted in favor of a motion to ban the import of Russian diamonds into the European Union (EU). This move is seen as a meaningful response to a request made by Ukrainian President Volodymyr Zelensky in March 2022. The Belgian MPs hope that this ban will be included in the EU’s eleventh sanctions package against Russia.
Antwerp, Belgium, which is a major hub for the global diamond trade, plays a crucial role in the rough diamond industry. Rough diamonds from around the world, accounting for about 85% of the total, as well as half of all polished diamonds and 40% of industrial diamonds, pass through Antwerp. Being the largest diamond producer globally, Russia earns approximately $4 billion annually from its rough diamond exports. The focus is particularly on Alrosa, a Russian company led by an associate of President Vladimir Putin, which allegedly uses its profits to finance the ongoing conflict in Ukraine.
Initially, the Belgian government hesitated to impose a ban on diamond imports due to concerns that the trade would simply shift to other centers like Dubai, thus adversely affecting Antwerp. However, the parliamentary commission’s motion now urges the government to push for an import ban on both direct and indirect trade of Russian diamonds within the EU Council. Furthermore, the motion suggests discussing the matter within the G7, since three EU countries are members of this group.
The upcoming G7 meeting in Hiroshima, Japan, scheduled for May 19-21, is likely to address this topic. The Belgian motion, receiving bipartisan support, will be presented to parliament in early May, and its approval seems almost certain after the unanimous support it gained in the initial vote.
By banning the import of Russian diamonds, Belgium aims to strongly condemn Russia’s actions and show support for Ukraine in the conflict. The diamond industry serves as a significant source of revenue for Russia, and severing this trade would exert economic pressure and potentially impact Russia’s ability to fund the war in Ukraine. The EU’s decision on whether to implement the ban will be closely monitored, as it could have widespread implications for the global diamond trade.
Useful links:
1. Alrosa website
2. European Commission website
