The European Union has extended the “sunrise period” for sanctions on Russian diamonds by six months and introduced a significant concession regarding goods predating the new rules.
According to a statement released Monday, the EU has postponed the mandatory implementation of the traceability program for imports of rough and polished natural diamonds from September 1, 2024, to March 1, 2025.
This extension aims to facilitate the establishment of the G7 traceability scheme, as outlined in the EU’s questions and answers.
The interim period allows importers to use alternative documentation to demonstrate that diamonds are not of Russian origin, responding to requests from industry stakeholders like De Beers.
Upon conclusion of this period, importers into the EU must adhere to a traceability-based certification scheme for diamonds over 0.50 carats.
Additionally, the EU has introduced a “grandfathering” clause exempting diamonds that were located in the EU, a third non-Russian country, or were processed in a third country before the sanctions came into effect. These diamonds, the EU emphasized, no longer generate revenue for Russia.
Reuters previously reported on the consideration of this concession, which has been welcomed by industry players like the Antwerp World Diamond Centre (AWDC).
They expressed relief that these goods can continue to circulate without severe financial repercussions on diamond companies while effectively cutting off revenue streams to Russia.
Furthermore, temporary imports or exports of jewelry, such as for trade fairs or repairs, are excluded from the ban.
The EU has also delayed the prohibition on jewelry incorporating Russian diamonds processed in third countries until activated by the European Council.
This update, part of the EU’s 14th package of sanctions against Russia since the Ukraine conflict began, refines the import ban initially implemented in its 12th package.
Earlier, De Beers advocated for a one-year extension to the G7 sanctions on Russian diamonds’ sunrise period.
The enforcement of rules remains within the purview of individual G7 members and the EU, with Belgium, historically a key destination for Russian miner Alrosa’s rough diamonds, playing a crucial role.
In parallel, the US currently mandates self-certification for diamonds up to 1 carat, lowering to 0.50 carats by September 1.
A recent delegation from the jewelry industry to Washington, DC, echoed calls for a “grandfathering” clause similar to that adopted by the EU.
