Media reports Russia penalties are disabling EU ‘diamond mecca’
Date
1/31/2025 11:39:47 PM
(MENAFN) Belgium's diamond industry, centered in Antwerp, is facing a significant downturn due to the EU's sanctions on Russian diamonds, which were imposed in response to the Ukraine conflict. The sanctions, which began in January 2024, have directly impacted Antwerp, known as the world's diamond trading hub, processing 90% of global diamonds.
The EU’s ban on Russian diamonds and restrictions on indirect imports have disrupted the industry, with Antwerp seeing a 25% drop in imports and exports in 2024. Russia, the world's largest diamond producer, was previously responsible for supplying over a third of the rough diamonds processed in Antwerp. Now, with this key source cut off, the industry is struggling.
Diamond traders are urging the Belgian government for assistance as businesses like Dali Diamonds Company have seen sales plummet by more than 50%. The sanctions are also causing Antwerp to lose ground to other diamond trading centers such as Mumbai, Dubai, and Hong Kong, which have not adopted the same restrictions.
While concerns are growing in the sector, political influence remains insufficient to shift the stance of EU and G7 policymakers. Industry representatives are calling for government support, while warnings about the broader effects of the sanctions continue to rise, with critics highlighting the potential negative impact on African producers and the global supply chain.
MENAFN31012025000045015687ID1109154828
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.