Diamond Giants Botswana and Angola Join Forces Against Russia
As Western sanctions tighten their grip on Russia, Botswana and Angola, two of the world’s top diamond producers, are implementing key measures to distance themselves from Russian influence in the diamond industry.
The Push to Keep Russian Diamonds Out
Diamonds were identified as a significant revenue source for Russia during its war against Ukraine. To isolate Russia economically, the EU and G7 imposed sanctions on Russian diamond sales from late 2023 onwards. First, the EU banned Russian diamond exports to Europe. Subsequently, a G7 ban, effective January 1, 2024, instituted a prohibition on imports directly from Russia. To close any loopholes, an additional ban, enforced on March 1, 2024, targeted Russian diamonds that had been processed by third-party nations.
To effectively enforce these sanctions, a compelling new traceability system is vital. A carefully implemented certification program would be essential.
Botswana has readily embraced this challenge. In a move showing commitment to support the effort, the nation agreed to certify the origin of their own diamonds.
This program, commences in early 2025, leverages a partnership with the Antwerp World Diamond Centre. Losing control is attempting to prevent any Russian diamonds from entering Western markets. A unique numbering system will be used for each shipment under this ambitious scheme, effectively severing Russian diamonds from the global supply chain.
Angola Follows Suit
Botswana is not alone in its mission. Angola, Africa’s second-largest diamond producer, has also adopted a similar strategy to isolate Russia’s hold on the diamond trade. Previously, the Russian state-owned Alrosa held a 41% stake in a joint venture partnership in Angola. Angola’s Mineral Resources Minister announced that an Omani investment fund will be acquiring Alrosa’s stake. Diamantino Azevedo, Angola’s Mineral Resources announced, stating that the move underscored Angola’s dedication to ethical diamond sourcing and global trade transparency
Both countries are vitally dependent on diamond exports. For Botswana, diamond exports make up a staggering 63% of enduring its economic strength.
There is a dedicated focus on building
With the assistance of a powerfulo maintain their economies.
What are the potential benefits for Botswana and Angola in distancing themselves from Russian diamonds?
## Botswana and Angola: Taking a Stand Against Russian Diamonds
**Host:** Welcome back to the show. Today we’re discussing the growing rift between major diamond producers and Russia in light of the ongoing war in Ukraine. Joining me is [Alex Reed name], a leading expert in the global diamond industry. [Alex Reed name], thanks for being here.
**Alex Reed:** Thanks for having me.
**Host:** As we know, Russia is a major player in the diamond market. But with increasing sanctions targeting Russian diamonds, Botswana and Angola, two other leading diamond producers, seem to be distancing themselves. Can you elaborate on what prompted this move?
**Alex Reed:** Absolutely. The war in Ukraine has drastically altered the geopolitical landscape, and the diamond industry hasn’t escaped this upheaval. The West has realized the significance of diamonds as a revenue stream for Russia. As a result, the EU and G7 implemented a series of sanctions, effectively banning Russian diamond exports to the West starting late 2023.
**Host:** And these sanctions are having an impact?
**Alex Reed:** Definitely. While the initial ban targeted direct Russian exports, loopholes were quickly identified. That’s why the G7 imposed a further ban in March 2024, targeting diamonds that had been processed elsewhere. This move is clearly aimed at closing any gaps that would allow Russian diamonds to enter the market indirectly.
**Host:** So, what role are Botswana and Angola playing in all this?
**Alex Reed:** Botswana and Angola are crucial players in the global diamond industry, and they’ve shown a clear commitment to distancing themselves from Russian diamonds. This stance is driven by a combination of ethical concerns, a desire to maintain a clean image within the industry, and likely, a strategic decision to capitalize on the potential vacuum left by Russia in the market.
**Host:** Interesting. Do you anticipate other major diamond producers following suit?
**Alex Reed:** It’s certainly possible. The pressure is mounting on the diamond industry to disengage from Russia. We’re seeing a growing awareness among consumers and investors about the origin of diamonds and the ethical implications involved.
**Host:** [Alex Reed name], thank you for sharing your insights on this important topic. It looks like the diamond industry is undergoing a significant transformation. We’ll be following these developments closely.
**Alex Reed:** My pleasure.
