No more sparkle from Russia: EU import ban on diamonds applies

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The measure is intended to deprive the government in Moscow of an important source of income and thus limit its ability to finance the war against Ukraine. The European Commission recently estimated Russian revenues from diamond sales at around four billion euros per year.

An indirect import ban on Russian diamonds processed in third countries other than Russia will also be gradually introduced during the period from 1 March to 1 September. The transition period is intended to allow the introduction of a traceability mechanism that minimizes disruption for market participants. In future, anyone importing diamonds into the EU will have to provide proof of the country of origin of the diamonds or diamond products.

The reason why a ban on the import of Russian diamonds was only decided almost two years after the start of the war was, among other things, the initial resistance from Belgium. The Flemish port city of Antwerp has been one of the most important diamond centers in the world since the 16th century. Russia is considered the world’s largest producer of rough diamonds. In 2021, state diamond miner Alrosa had a turnover of 332 billion rubles (about 3.4 billion euros).

In addition to the diamond ban, the latest EU sanctions package against Russia also included an import ban on raw materials for steelmaking and processed aluminum products, as well as export restrictions on goods such as lithium batteries, thermostats and certain chemicals. There is also a new import ban on liquefied petroleum gas (LPG) from Russia, which, according to the Commission, will affect imports of more than one billion euros per year. Under a grandfather clause, existing contracts should also be affected after a maximum of twelve months.

For example, there has been a far-reaching import ban on crude oil, coal, steel, gold and luxury goods for some time now, and there are punitive measures against banks and financial institutions.

Switzerland could soon join the EU’s twelfth sanctions package. The Federal Council announced just before Christmas that it would deal with a possible takeover of the package “immediately”. The Federal Council adheres in principle to the EU sanctions, but examines the individual measures based on previous information.

According to the federal government, imports of Russian diamonds into Switzerland have fallen dramatically since the start of the war. There would no longer be any direct imports of natural and synthetic diamonds from Russia.

(SDA)

Source: Blick