Highlights: Russian diamonds: sanctions lead to blockages at customs, deplore Antwerp traders. The latest phase of sanctions against Russian diamonds, which came into force on March 1 in the EU, involves new customs controls. The Belgian government acknowledges delays, but ensures that it is doing everything to “make the work of importers as easy as possible” “It’s a big mess,” confirms a player in the sector. “We are unable to fulfill our customers’ orders, we have to finance stranded excess inventory and we are asked for documents that were not requested in advance”

The latest phase of sanctions against Russian diamonds, which came into force on March 1 in the EU, involves new customs controls which are slowing down activity in the sector, according to traders...

Russian diamonds: sanctions lead to blockages at customs, deplore Antwerp traders

The latest phase of sanctions against Russian diamonds, which came into force on March 1 in the EU, involves new customs controls which slow down activity in the sector, according to Antwerp traders.

The Belgian government acknowledges delays, but ensures that it is doing everything to “make the work of importers as easy as possible”.

Diamonds being analyzed at iTraceiT, in Antwerp at the end of 2023 (illustrative photo).

AFP - FRANCOIS WALSCHAERTS

By: Nicolas Feldmann Follow

Diamonds stuck in customs for several days, disrupted supply chains and slow shipments.

In a letter sent Wednesday March 13 to the Antwerp World Diamond Center (AWDC), the main diamond industry group in Belgium and consulted by RFI, 146 Antwerp traders deplore the negative impact of sanctions on their activity.

The latest section of sanctions which bans Russian diamonds of more than 1 carat – including those polished abroad –, which came into force on March 1 in the European Union, requires that stones entering through the port of Antwerp are inspected by customs at the Antwerp Diamond Office.

But according to the signatories of the letter, who are not opposed to the very principle of the sanctions, the controls and documents requested by the Belgian authorities affect imports and block the stones “

in certain cases, for more than a week

” .

Rising expenses and loss of activity

The intention of the sanctions “

was to prevent the flow of diamonds from sanctioned states, but the reality we face is the severe disruption of our supply chains and alienation from the rest of global trade

,” write the signatories, without providing any encrypted data.

“

This results in a significant increase in expenses and an irreplaceable loss of business.
We are unable to fulfill our customers' orders, we have to finance stranded excess inventory and we are asked for documents that were not requested in advance.

To rereadThe European Union sanctions the largest Russian diamond producer, Alrosa

Three batches of questionable diamonds referred to the prosecutor

“

It’s a big mess,”

confirms a player in the sector.

Traders have no information about the paperwork that must accompany their goods to enter the EU.
Many batches of diamonds are currently returning from the Hong Kong fair

(the Hong Kong International Diamond Gem & Pearl Show was held from February 27 to March 2, 2024, Editor's note)

.
They left the EU before March 1 under a sanctions regime – which only banned rough diamonds of Russian origin – and are returning under new restrictions.

“

The rules for applying sanctions arrived very late

,” explains a Belgian government official, who speaks of goods being blocked at customs for no more than four days.

Between March 1 and 12, the Belgian authorities claim to have received and inspected 431 batches of diamonds (rough and polished).

Of the 67 batches of rough diamonds, the authorities indicate that 51 were authorized to enter Belgium, and were thus able to obtain the first "G7 certificates" attesting that they complied with the new rules in force in the countries of the EU and G7.

Three batches were, however, referred to the Attorney General for “

doubts of sanctions violations

”.

Information sessions for traders

“

Today, we are doing our best to process the batches that arrive within 24 hours

,” assures the Belgian official.

We recognize that the rules were published late, but we are working to make the job of importers as easy as possible.

The Belgian government and the AWDC have committed to offering information sessions for traders on the procedures to follow in order to comply with the new EU rules.

Antwerp, diamond trading stronghold under threat?

The signatories of the letter are also concerned about the application of sanctions on diamond activity in Antwerp.

“

We believe that the procedures will cause Antwerp to lose an additional competitive advantage... rather than dealing a significant blow to the sanctioned products

,” they indicate.

“

A large part of the Russian diamonds which previously passed through Antwerp will now go to other countries such as India or Dubai,”

explains the Belgian official.

It is undeniable: Antwerp will lose market share.
We are doing our job, creating new standards of transparency and traceability to ensure, in accordance with the sanctions, that no Russian diamonds ever enter our territory.

Russian diamonds: sanctions lead to blockages at customs, deplore Antwerp traders

Russian diamonds: sanctions lead to blockages at customs, deplore Antwerp traders

Rising expenses and loss of activity

Three batches of questionable diamonds referred to the prosecutor

Information sessions for traders

Antwerp, diamond trading stronghold under threat?

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