In a surprising turn of events, Belgium has opted to withdraw its support for the imposition of sanctions on Russian diamonds, a decision that has stirred controversy within the diamond industry, particularly irking De Beers, the globe’s foremost diamond producer.
Belgium’s abandonment of its previous stance, however, has been met with consternation from various quarters within the diamond industry, including De Beers, a prominent figure in the sector.
This unfolding controversy has emerged mere weeks before the anticipated unveiling of a decision by the Group of Seven (G7), as reported by Harry Dempsey, a respected commodities correspondent for the Financial Times.
Presently, the European Union has not enforced sanctions on Moscow’s diamond exports. Belgium has voiced apprehensions that its thriving diamond trading hub in Antwerp could experience a downturn in business if sanctions were to be imposed, potentially diverting trade to other centers, notably Dubai.
Approximately 90% of the world’s diamonds pass through Antwerp, and Russia, in the previous year, raked in a substantial $4 billion from its rough diamond exports.
In the meantime, G7 nations are progressively advancing toward the establishment of a comprehensive traceability system for diamonds. This innovative system would empower the world’s wealthiest economies to restrict the import of Russian gems commencing from the outset of the forthcoming year.
