Antwerp, Belgium, renowned as the world’s largest diamond trading hub, is grappling with bureaucratic hurdles and financial setbacks following sanctions imposed on diamonds of Russian origin.
According to a European Commission official speaking to RIA Novosti on March 15, the responsibility of verifying the provenance of diamonds destined for EU markets under the G7 ban on Russian diamond imports falls upon the state-operated Diamond Office based in Antwerp.
Reportedly, officials at the Diamond Office are stringent about requiring documentation to authenticate the origin of each batch of diamonds. This meticulous process has resulted in prolonged delays, increased expenses, and mounting frustration among clients, as per sources cited in a report published by a local newspaper on Sunday.
Expressing the industry’s concerns, one diamond trader emphasized that even a brief delay of two to three weeks for a single shipment translates to a staggering loss of approximately $500 million, ultimately passed on to customers. Meanwhile, a financial adviser disclosed that ten local diamond firms are contemplating relocation to destinations such as the United Arab Emirates or India due to the stringent regulatory environment.
The European Union, along with G7 nations, initiated a ban on the direct importation of diamonds mined, processed, or manufactured in Russia, effective January 1. Furthermore, from March 1 onwards, these countries have been gradually tightening restrictions on the importation of Russian diamonds processed in third-party nations. Belgium is anticipated to play a pivotal role in enforcing these sanctions.
