Transparency International calls on Belgium to stop diamond trade with Russia

Anti-corruption organisation Transparency International has called on Europe, and particularly Belgium, to end the lucrative diamond trade with Russia, a trade which helps fund the Russian government.

In an open letter to senior officials of the Belgian and European governments, including Belgian prime minister Alexander De Croo and President of the European Commission Ursula von der Leyen, the organisation points out that Belgium is the largest importer of Russian diamonds in Europe.

Last year, $1.8 billion worth of rough diamonds arrived in Belgium alone. A quarter of all diamonds in the EU come from the Alrosa Group, a Russian diamond mining company with strong ties to the Kremlin. Alrosa is already subject to US sanctions, but the EU has not yet taken similar action against the company.

"Russia exports $4 billion worth of rough diamonds annually. Moreover, Alrosa's chief executive Sergei Ivanov is one of the oligarchs sanctioned by the US, which makes it even more questionable why this oligarch-led business sector has not been addressed by the EU," the letter states.

The Belgian government has been highly resistant to an embargo on diamond imports. Belgium's thriving diamond industry, which is concentrated in Antwerp, is a major boost to the economy and employs around 32,600 people, the Antwerp World Diamond Centre (AWDC) claims.

De Croo denies that he has tried to block measures against the diamond trade, although he has previously said that a ban on diamonds would simply force the industry to move to another country. "In that case, the effect on Russia would be nil, but the effect on Europe would be very large."

A sentiment straight from the mouth of the AWDC, which told Flemish newspaper Het Laatste Nieuws that the United Arab Emirates and India "are ready to take over Antwerp's diamond trade in the blink of an eye".

The Belgian prime minister has kept the door open for action at the European level, but has opposed measures to curb the trade at home. A decision that aroused the ire of Ukrainian President Volodoymr Zelenskyy during his speech in the federal parliament on 31 March.

"Russia is able to finance its war effort largely through the export of raw materials and natural resources. A ban on the import of diamonds, which are in the top 10 non-energy exports by value, could be an additional step limiting Russia's access to world markets and foreign exchange," Transparency International EU explains.

Despite claims to the contrary by De Croo and the diamond industry, Transparency International believes a ban on Russian diamonds would have a "relatively small impact on the EU compared to the Russian treasury and diamond companies".

"We call on you to act now to save lives in Ukraine and cut off this important Russian source of foreign revenue," the letter concludes.

(PRESS)

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