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Bota

How Russian diamonds escaped sanctions, here's what traders warned

How Russian diamonds escaped sanctions, here's what traders warned

About 80 percent of the world's diamonds are traded on a small street in Antwerp, Belgium.

Until now, precious stones from Russia have escaped EU sanctions, but the circle appears to be narrowing.

At the G7 summit, the world's most industrialized countries postponed the ban but promised to continue the work.

The World Diamond Center in Antwerp warns that sanctions will only work if they are global.

Tom Neys, spokesman for the World Diamond Center in Antwerp, said: "If the EU decides to go it alone, then it will be dramatic for Antwerp, as the rest of the world, unaware of the sanctions, will continue the Russian diamond trade and will have no impact on the Russian economy at all. In fact, the impact will be zero".

The center warns that the market could shift to countries that are less vigilant about the origin of diamonds and money laundering, which would cause Antwerp losses.

Russia produces 30% of the world's diamonds through the state company "Alrosa". Some traders, such as Ilana Brandëain, have changed suppliers. Her clients, who live in G7 countries such as the USA, France, or Canada, asked her for this.

"It is very difficult to know the origin of a clean diamond, although I have used Russian diamonds. But I know that the market is stricter here in Antwerp. The big jewelry houses that supply here don't use Russian diamonds because the customers have asked for it," said Ilana Brandëain, a diamond merchant.

For now, the G7 has chosen to explore a new technology that will enable the discovery of the origin of diamonds.

The President of the European Council, Charles Michel, has warned that trade in Russian diamonds will be restricted, although he has not yet set a date.

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