EU Faces Financial Losses Due to Sanctions on Russian Diamond Exports

Written by Kathrine Frich

Jun.26 - 2024 1:46 PM CET

Photo: Shutterstock
Photo: Shutterstock
The most substantial losses have occurred in the export of non-industrial diamonds.

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The European Union continues to suffer financial losses from sanctions imposed on Russia, with the diamond export sector taking a significant hit.

According to ABNews since the beginning of 2024, EU countries have seen a 25% drop in revenue from this industry, earning only 2.5 billion euros compared to 3.34 billion euros in the previous year.

Major Decline in Non-Industrial Diamond Exports

The most substantial losses have occurred in the export of non-industrial diamonds, with shipments decreasing by 791 kilograms. Currently, up to 2.5 tons are being exported to other countries.

The EU does not produce these diamonds itself and previously relied heavily on imports, with Russia accounting for a third of the market.

Due to the sanctions, imports from Russia have halted, and other countries have also reduced their supplies.

EU Delays Diamond Certification System to Mitigate Losses

The reduction in imports has resulted in significant financial losses.

To address this issue, EU leaders have decided to delay the implementation of a diamond certification system designed to enforce the ban on importing diamonds from Russia.

This move aims to alleviate the financial strain caused by the sanctions and stabilize the diamond market within the EU.