Diamond trade polishes its act as Russia sanctions loom

As European capitals prepare to implement long-awaited sanctions on Russia’s diamond exports, Belgian traders are bracing for new scrutiny of their industry. In Antwerp’s renowned diamond district — which handles an estimated 86% of the world’s rough diamonds — polishing “labs” are turning to blockchain technology to prove their gemstones come from legitimate mines in Africa, Australia or Canada and not Russia.

As European capitals prepare to implement long-awaited sanctions on Russia's diamond exports, Belgian traders are bracing for new scrutiny of their industry.

In Antwerp's renowned diamond district — which handles an estimated 86% of the world's rough diamonds — polishing "labs" are turning to blockchain technology to prove their gemstones come from legitimate mines in Africa, Australia or Canada and not Russia.

With Russian stones having accounted for around a third of the global market before Moscow's 2022 invasion of Ukraine, the G7's decision to ban trade in them could have broad repercussions.

Industry insiders in Belgium expect the sanctions to be phased in gradually, limiting market disruption. Meanwhile, major traders and jewellery brands have begun adopting advanced tracking technology to check and certify where their diamonds are coming from.

The industry has sought to burnish its image ever since outrage erupted two decades ago over so-called "blood diamonds" financing brutal civil wars in Africa.

If traders are now seen helping Russia evade sanctions to keep financing its invasion of Ukraine, the shine may come off diamonds once again.

The European Union (EU) is drawing up bans on Russian diamonds as part of its 12th package of sanctions to tighten the vice on Moscow's war economy and cut off funds the country is using to buy munitions and drones from North Korea and Iran.