Antwerp, Belgium – one of the largest diamond trading hubs globally – is facing a significant issue with Russia. Following the invasion of Ukraine by Russian troops last year, diamond firms in Antwerp received phone calls from international clients requesting them to avoid using stones sourced from Russia. Thierry Tugendhaft, a diamond dealer at T. Diamonds, faced the challenge of finding alternative sources for his rough diamonds, as around half of his supply used to come from Russia due to their high quality.
Now, Western powers are seeking to formalize the boycott and implement a ban on Russian stones. However, Tugendhaft believes that the ban will have its limitations. He points out that major diamond consumers like China and India have no interest in the ban and will continue to purchase Russian diamonds. According to him, Asian markets, in general, lack interest in knowing the origin of the stones. Therefore, the ban may not have the desired impact.
Prominent Western jewelers such as Tiffany’s and Cartier have expressed their intention to distance themselves from Russia’s lucrative diamond trade. However, one major obstacle in banning Russian diamonds from Western markets, which make up 70% of global diamond jewelry demand, is the difficulty in tracing the origin of the stones. Tugendhaft believes that smaller companies will struggle with this requirement, as they may not have the necessary systems in place for traceability. He explains that traceability is a complex process that requires significant investment and time. While his company has been working on traceability for the past two years, newcomers to the industry will lag behind if they haven’t started implementing traceability measures.
Tugendhaft warns that a complete Western ban on Russian gems would not only be costly for the industry but also time-consuming to implement fully. He estimates that it could take up to another year to enforce the ban effectively. Despite the Western powers’ efforts, it remains to be seen how successful the ban on Russian diamonds will be and whether it will have a significant impact on the global diamond trade.
