EU diamond sanctions to hit €4 billion Russian revenue stream

The European Commission has published updated guidelines detailing the next phase of the European Union‘s comprehensive ban on Russian diamonds.

According to the commission, the aim is to further restrict Russia‘s access to vital revenue streams.

The measures, which form part of a coordinated G7 effort, aim to deprive Russia of an estimated €4 billion in annual revenue, of which approximately €1.5 billion stems from imports into the EU.

“A ban is only effective if a major part of the world’s diamond retail market implements such a ban” the regulatory document stated while explaining the necessity of international cooperation.

Since January 1, 2024, the EU has prohibited the purchase and import of non-industrial natural and synthetic diamonds if they originate in or were exported from Russia.

From January 1, 2026, these restrictions will intensify as the mandatory requirement for traceability evidence and certification for polished diamonds becomes fully operational.

This upcoming stage targets diamonds with a weight equal to or above 0.5 carats or 0.1 grams, including those processed in third countries.

“The weight thresholds apply equally to rough and polished diamonds at the time of importation into the Union” the commission clarified regarding the technical standards for the ban.

The Antwerp Diamond Office in Belgium will continue to serve as the primary “rough import node” for the EU, currently handling 99.99 per cent of all rough diamond imports.

Rough diamonds entering the market must pass through this facility for initial physical verification and the issuance of a G7 certificate.

For polished diamonds, the regulator noted that in the absence of a specific amendment, documentary-based evidence will continue to be accepted after the January deadline.

“Evidence derived from commercial traceability platforms is recommended” as the most effective way for operators to prove a diamond’s non-Russian origin.

While jewellery incorporating Russian diamonds was initially scheduled for stricter bans in late 2024, the Council has postponed this measure pending further G7 coordination.

However, existing bans remain in place for gold jewellery and precious metal jewellery from Russia, covering any diamonds that may be set within those products.

Natural persons travelling to the EU are still permitted to carry diamond jewellery for personal use, provided it is not intended for sale.

The European Commission emphasised that operators must apply transparency and integrity principles in good faith when implementing these new due diligence statements.