Diamond giants Botswana and Angola agree to push Russia out of market

The world's top 2nd and 4th diamond producers are stepping up to help the G7 and EU prevent Russian stones from entering global markets.

Dec 3, 2024 - 19:00

Diamond giants Botswana and Angola agree to push Russia out of market

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Politico reports that Botswana and Angola have taken significant steps in recent weeks to support the Western sanctions against Russia’s diamond exports. Botswana has been the world’s second-largest diamond producer after Russia, followed by Canada and Angola.

Diamonds are one of Russia’s major revenue sources, with the country being the world’s largest diamond producer by volume. In response to Moscow’s ongoing invasion of Ukraine, the EU and G7 imposed sanctions to limit Russia’s income. In late 2023, the EU banned the export of Russian diamonds to Europe, followed by a G7 import ban starting 1 January 2024. On 1 March 2024, the G7 also banned Russian diamonds processed in third countries.

To ensure Russian diamonds are excluded from Western markets, traceability systems must be implemented. To help with this, Botswana has agreed last week to certify the origin of their diamonds, supporting the G7’s efforts to limit Russia’s market access.

Botswana will begin certifying rough diamonds in early 2025, with a system developed in partnership with the Antwerp World Diamond Centre (AWDC). The system will assign numbers to shipments, preventing them from being mixed with Russian diamonds at major trade hubs like Dubai or polishing centers such as Surat, India, Politico reports.

In addition to Botswana, Angola has also taken important steps to sever its ties with Russian diamond interests. Previously, Russia’s state-owned Alrosa held a 41% stake in a joint venture with Angola’s diamond company. However, Angola announced that an Omani investment fund would purchase Alrosa’s stake, a move that Angola’s Mineral Resources Minister Diamantino Azevedo noted was necessary to maintain the country’s credibility in the international diamond market.

The diamond industries of both countries are vital to their economies, with Botswana’s diamond exports making up 63% of the country’s total exports in 2023, and Angola’s diamonds representing almost 10% of its exports.

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