By: Joanna YORK
Experts from the G7 and Belgium will discuss potential sanctions on Russian-mined diamonds this week on a visit to the Indian cities of Mumbai and Surat.
The trip is the latest step forward in months of negotiations among Western powers over how to impose sanctions that could transform a sprawling – and often controversial – global industry.
Around one-third of the world’s supply of diamonds are mined in the Siberian region of Yakutia by Russian state-owned company Alrosa. The diamond industry overall contributes around $4.5 billion to the Russian economy annually, making it one of the largest sectors in Russia to avoid the sweeping sanctions imposed by Western powers since the start of the full-scale invasion of Ukraine in 2022.
But this is not for lack of trying. Individual countries such as the US and UK have introduced their own sanctions on the luxury stones even while discussions over diamond sanctions among the EU stalled due to pushback from member state Belgium.
Belgium’s port city of Antwerp is home to the centuries-old Diamond District – the world’s largest diamond trading hub.
Approximately 84% of the world’s rough-cut diamonds and 50% of all polished diamonds are traded through the Belgian city, equivalent to around $220 million dollars' worth of diamonds every day.
Belgium has argued EU sanctions would excessively penalise its economy while leaving other EU economies relatively intact and Russia free to sell its diamonds outside the bloc.
https://www.france24.com/en/economy/20230927-western-g7-sanctions-russian-diamonds-disrupt-global-industry-belgium-india