After G7 decision: EU wants to “limit” trade in Russian diamonds

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After G7 decision
EU wants to ‘limit’ trade in Russian diamonds

The Russian diamond trade is worth $4-5 billion a year. First the G7 countries restrict trade with Russia here. Now the EU is following suit, which could have major consequences for Russia: one of the largest buyers of Russian diamonds is in the EU.

The EU wants to “limit” trade in Russian diamonds as part of sanctions over Russia’s war of aggression against Ukraine. This was announced by EU Council President Charles Michel on Friday at the G7 summit in Hiroshima, Japan. Britain had previously announced a ban on trading in Russian diamonds. The USA also announced a new sanctions package.

The Russian diamond trade is estimated to be worth $4-5 billion a year and generates important tax revenue for the Kremlin. On Thursday, an EU official said G7 leaders specifically planned talks on sanctions against Russia’s billion-dollar diamond trade. Literally, he said: “We believe that we must limit Russian trade exports in this area.”

Belgium buys a lot of diamonds

EU member Belgium is one of the largest buyers of Russian diamonds, along with India and the United Arab Emirates. The USA is one of the most important buyers of the end products.

London will impose a “ban on Russian diamonds” and target companies involved in Russian President Vladimir Putin’s “military-industrial complex,” the British government said ahead of the G7 summit in Japan. London’s new sanctions also target Russia’s trade in aluminium, copper and nickel.

US impose new package

A senior US official said ahead of the start of the G7 summit in Japan that around 70 companies in Russia and other countries should no longer receive US exports. In addition, around 300 “individuals, facilities, ships and aircraft” would be affected by further sanctions.

The US government representative emphasized that all G7 countries are working on “new sanctions and export controls”. Together with the “substantial” US package, these would make it extremely difficult for Russia to maintain its “war machine”. British Prime Minister Rishi Sunak said the newly announced sanctions show the G7 are “united” in the face of the Russian threat and “firm in our support for Ukraine”.

In addition to Germany and Japan, the G7 group of the world’s leading economic nations also includes the USA, France, Great Britain, Italy and Canada.



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