The European Union plans to issue a Russian diamond ban, which may have a huge impact on the global diamond trading market.
Recently, according to Russia, the European Union is preparing to launch a new round of sanctions against Russia - restricting Russia's diamond export trade.
Borelli, the head of foreign affairs of the European Union, said that Belgium, a G7 and a diamond trading power, supported the sanctions initiative. The 12th round of the EU sanctions plan will include a long-held Russian stone ban ban on Russian diamond trade, including Russia's diamond mining business, which may have a huge impact on the global diamond trade market.
Russia is one of the countries with the largest diamond production in the world and has the largest diamond mining and processing enterprises in the world. Belgium is the hub of the European diamond trade, and nearly 40% of the diamond trade comes from Russian diamonds. Since the senior Russian-Ukrainian conflict, the European Union has imposed a number of sanctions, and diamonds are one of Russia's few major export products that have not been affected by sanctions.
Since the outbreak of the Russian-Ukrainian conflict, the European Union has imposed multiple rounds of sanctions on Russia.
Alrosa, Russia, is still trading in EU countries. The Yakutia Republic of Russia is located in the vast Siberia and is home to most of the company's mines. After the Ukrainian crisis, Alrosa CEO Sergeyevich was one of the first oligarchs to be sanctioned by the United States. His father, former Russian Secretary of Defense Borisovich, was also sanctioned by the United States.
In response, Tom Neys, a spokesman for the World Diamond Centre in Antwerp (AWDC), said that since the beginning of the crisis in Ukraine, the diamond industry has been uncertain, and millions of transactions have been pending. He also pointed out that large companies can find alternatives to Russian diamonds, "but it is very difficult for small businessmen... If they have no other choice, they will be squeezed and unable to survive."
For the diamond industry worth up to 80 billion dollars, the original sanctions of the United States have deeply disrupted the market order of the industry.
Belgium previously opposed the proposal to ban the import of diamonds from Russia. Belgian Prime Minister Alexander de Cro said at an international diamond industry conference on 14 this month that the blocking of Russian diamonds will bring "huge losses" and will affect the diamond trading industry, which is very important to Belgium. Diamond exports account for 5% of Belgium's total exports, creating about 30,000 jobs for Belgium.
According to statistics, the diamond raw stone mining of Elosa Mining accounts for 95% of Russia's production and 28% of the world's diamond mining, which can be said to be the most important diamond production area in the world so far.The sanctions will have a more serious impact on the global diamond trade. Data show that even in 2020, when the epidemic is raging, more than 1 billion euros of Russian diamonds are traded through Antwerp.
Against the backdrop of the continuous collapse of diamond prices, Erosa Mining expects that if the production of 30 million carats of diamond every year faces a market blockade, the price of natural diamonds may resume its rise, and the cultivation of diamonds will usher in significant benefits.
