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EU Considers Sanctions on Russian Diamonds Amid Challenges April 11, 2023 (0 comments)
Laramie, WY--The European Union (EU) is considering sanctioning diamonds from Russia, one of the world's largest diamond suppliers, as part of their efforts against the Kremlin.
[Photo by Marta Branco]
According to a news report, Belgium, the center of the EU diamond trade, has resisted these sanctions due to concerns about the impact on its industry. Antwerp-based International Peace Information Service's Hans Merket explained in the report that one Russian mine, Alrosa, is a significant business partner for Antwerp's diamond industry, accounting for 25% of all rough diamond imports.
Marty Hurwitz, CEO of MVEye, a research company specializing in gems and jewelry, highlighted in the report that revenues from Alrosa go into the Kremlin's coffers, funding the war in Ukraine. However, tracing the origin of diamonds proves difficult due to the global nature of the diamond trade, which involves multiple transactions between mines, manufacturers, wholesalers, and retailers.
The Kimberley Process certifies a diamond's origin but doesn't track it after it leaves the mine, according to the report. The US, G7 allies, and the EU are discussing better tracking methods, while some companies, like Brilliant Earth, are already utilizing blockchain technology for traceability.
Learn more in this report.