Diamonds and diamond jewelry from Russia can no longer be imported into the European Union since the beginning of the new year. This is foreseen in the sanctions adopted in December due to Russia's war of aggression against Ukraine. The measure is intended to deprive the Moscow government of an important source of income and thus also limit its ability to finance the war against Ukraine.
The European Commission recently estimated Russia's income from the sale of diamonds at around €4 billion per year. During the period from March 1 to September 1, an indirect import ban on Russian diamonds processed in third countries other than Russia will also be gradually introduced. The transition period is intended to allow the introduction of a traceability mechanism that will minimize disruption to market participants. Anyone importing diamonds into the EU will in future have to provide proof of the country of origin of the diamonds or diamond products.
US ban on “toothless”
US sanctions against Russian diamonds have turned out to be relatively ineffective, as diamonds cut or polished outside of Russia are no longer considered Russian stones and can be traded freely.
The reason why the ban on the import of Russian diamonds into the EU was only decided almost two years after the start of the war was, among other things, Belgium's initial resistance. 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 mining company Alrosa had revenue of 332 billion rubles (3.31 billion euros).
Ban on the import of raw materials
In addition to the diamond ban, the EU's latest sanctions package against Russia also included a ban on imports of raw materials for the production of steel and processed aluminum products, as well as restrictions on the export of goods such as lithium batteries, thermostats and certain chemicals. There is also a new ban on imports of liquefied petroleum gas (LPG) from Russia, which, according to the Commission, affects imports worth more than a billion euros per year. According to a previous clause, existing contracts must also be affected after a maximum period of twelve months.
For example, there has long been a ban on imports of crude oil, coal, steel, gold and luxury goods, as well as punitive measures against banks and financial institutions.