Brussels—The European Union’s latest set of sanctions against Russia has unveiled details regarding the impending G7 restrictions on diamonds from the country, expanding the embargo to encompass lab-grown diamonds and jewelry embedded with Russian-origin stones.
This announcement, published on Monday as part of the EU’s 12th round of sanctions against Russia, signifies a significant move following the invasion of Ukraine by Russia nearly two years ago. For the first time since the conflict began, Russian diamonds are specifically cited among the products barred from entering the EU.
Aligned with an “internationally coordinated” G7 decision, the EU’s official statement mirrors much of the language earlier released by the Group of Seven nations. Effective January 1, both the EU and all G7 member countries will prohibit the import of non-industrial, natural diamonds originating from Russia, whether mined, processed, or produced there.
While the initial impact of this ban on Russian diamonds entering the United States has been minimal since March 2022, the subsequent steps intensify the embargo. Starting March 1, the ban extends to natural Russian diamonds cut and polished in other nations, weighing 1 carat and above.
Furthering the embargo, as outlined by the EU, on September 1, the restrictions will encompass lab-grown diamonds created in Russia, finished jewelry adorned with Russian diamonds, and timepieces containing Russian diamonds weighing a half-carat or more—items not explicitly addressed in the G7’s initial statement.
Sara Yood, deputy general counsel at the Jewelers Vigilance Committee, expressed her approval of including lab-grown diamonds in the ban, stating, “It’s ultimately a good thing,” emphasizing the importance of consistency in transparency and traceability across the board.
Moreover, the EU’s statement marks the first inclusion of diamond-set watches, an addition Yood sees as an attempt to preempt potential exploitation of loopholes.
Expanding on the G7’s call for a robust diamond traceability mechanism, the EU detailed in a Q&A on the sanctions package its plan to implement a blockchain-based verification and certification system for rough diamonds. This system will entail mandatory registration using “digital twins” of the real diamond in its rough state, fostering traceability from origin through the cutting and polishing process, allowing verification upon importation.
While the EU confirmed the blockchain ledger’s intended utilization across G7 and EU jurisdictions and economic entities, it omitted the requirement for diamonds destined for G7 nations to pass through Antwerp—a contentious aspect of the so-called EU Proposal.
The EU aims to commence the pilot phase of the system by March 1, with full implementation expected by the September 1 deadline. While companies can choose their verification system until August 31, the adoption of the blockchain-based system becomes mandatory from September 1 onwards.
Expressing the EU’s intent to collaborate closely with the industry, a spokesperson emphasized the primary objective: curtailing Russia’s diamond-related revenue, which fuels its aggression against Ukraine.
