The Belgian city of Antwerp, known as the world’s largest diamond trading center, is grappling with bureaucratic hurdles and financial losses due to sanctions targeting Russian-origin diamonds, as reported by The Times newspaper.
According to a European Commission official speaking to RIA Novosti on March 15, the task of verifying the origin of diamonds, essential for their entry into EU markets under the G7 ban on Russian diamond imports, has been assigned to the state-run Diamond Office in Antwerp.
The Diamond Office officials are insisting on thorough documentation to validate the origin of each batch of diamonds, resulting in significant delays, increased expenses, and frustration among clients, the newspaper revealed, citing inputs from multiple diamond traders.
The impact of these delays is substantial, with one trader estimating that a mere two to three-week delay in a single shipment costs the industry approximately $500 million, a financial burden ultimately shouldered by customers. Concurrently, a financial advisor noted that ten local diamond firms are already considering relocation to the United Arab Emirates or India in response to the new regulatory landscape.
Commencing January 1, the European Union and G7 nations imposed a ban on the direct import of diamonds sourced, processed, or manufactured in Russia. Furthermore, from March 1 onwards, these countries have been progressively limiting imports of Russian diamonds processed in third-party nations. Belgium is anticipated to play a pivotal role in enforcing these sanctions.
