EU Sanctions could Cost 10,000 Antwerp Diamond Jobs

[Karl_K]

EU Sanctions could Cost 10,000 Antwerp Diamond Jobs

www.idexonline.com

 

[Karl_K]

Sometimes doing the right thing hurts a lot.

 

[Garry H (Cut Nut)]

It may be hard to see how 10,000 jobs could go - that would be most of them?
It is also hard to see how Antwerp adds a lot of value in handling rough these days?
For the many decades I have been in the biz I have seen people selling Belgian and Russian ideal cut diamonds - but Belguim cut very few after WWII.
Russian Ideal Cuts were mainly sold from Antwerp and there were more on the market than diamonds polished in Russia.

 

[DAF]

With regard to Russia shifting sales to India: Are Russian diamonds the new "Blood Diamond"?

 

[Karl_K]

With regard to Russia shifting sales to India: Are Russian diamonds the new "Blood Diamond"?

Yes and no.
Blood Diamonds were a small amount of diamonds and while very very bad was overblown in some ways. Basically the industry got hit over the head because of the actions of a few.
With Russia it is literally a ton of diamonds tied directly to a government that is illegally invading another country and committing war crimes.
Because it is so many diamonds it does effect the entire trade, there is likely not a diamond seller in the US who has not sold a diamond cut from rough from Russia.
Where it would be very highly unlikely that in recent years any have sold a "blood diamond".

 

[Rockdiamond]

It really does seem unlikely that they were 10,000 diamond jobs in Antwerp. I say this based on my limited time there… But also because of the market forces Garry mentioned. Antwerp hasn’t been a powerhouse in diamonds for years. There’s a presence, but not to that extent. Particularly over the last 10 years

 

[diagem]

It did change a bit since 2017 but plenty of rough diamonds still pass through this city (although Dubai is up there fighting for its market share).

Antwerp diamond district​

From Wikipedia, the free encyclopedia


Diamond shops
Antwerp's diamond district, also known as the Diamond Quarter (Diamantkwartier), and dubbed the Square Mile,[1] is an area within the city of Antwerp, Belgium. It consists of several square blocks covering an area of about one square mile. While as of 2012, much of the gem cutting and polishing work historically done in the neighborhood had moved to low wage centers elsewhere, about 84% of the world's rough diamonds passed through the district, making it the largest diamond district in the world with a turnover of 54 billion dollars.[2] Each year, approximately 50% of the rough diamonds return to Antwerp for cutting and polishing.[3]
Over $16 billion in polished diamonds pass through the district's exchanges each year. There are 380 workshops that serve 1,500 companies. There are also 3,500 brokers, merchants and diamond cutters. In 2017, roughly 234 million carats were traded in the district, an area with a workforce of 30,000 people. Over 80% of rough diamonds were purchased in Antwerp.[4]
Within the area is the Antwerp World Diamond Centre, and four trading exchanges[5] including the Diamond Club of Antwerp and the Beurs voor Diamanthandel, both of which were founded by Hasidic diamantaires,[6] the Antwerpsche Diamantkring and the Vrije Diamanthandel.[7]
The neighborhood is dominated by Jewish, Jain Indians, Maronites Christian Lebanese and Armenian dealers, known as diamantaires.[8][9] More than 80% of Antwerp's Jewish population works in the diamond trade; Yiddish was, historically, a main language of the diamond exchange.[10] No business is conducted on Saturdays.[11]

 

[Garry H (Cut Nut)]

I would not consider Russian diamonds as "blood diamonds" because there is no conflict or such associated with their mining or sale.
The matter concerns sanctions and while Europe continues to consume Russian gas and oil, chosing to ban the sale of rough diamonds is a political football, not a human rights issue.
The miners in Russia are further away from Moscow than Antwerp is. And thousands of miles away from the Ukraine conflict and many states are anti Russian anyway.

 

[Rockdiamond]

I certainly defer to Yoram if it's personal experience about Antwerp….

but the Wikipedia piece is kind of contradictory. It mentions that as of 2012 most of the jobs had left for lower priced destinations ( I’d guess most likely India)
It also says much of the world's rough passes through Antwerp. Again, I defer to Yoram, I don’t buy rough- but it does seem not to make a lot of sense. Why trade in Antwerp when that’s not where the goods are cut and sold.
Just doing a little checking on Rapnet...currently about 900,000 diamonds are available for sale in India, 210,000 in NYC, and 65,000 in Antwerp.
I don't think there are nearly 10,000 people working in the diamond business here in NYC. They're not cutting a lot in Antwerp...what are all these folks doing??

 

[Texas Leaguer]

With regard to Russia shifting sales to India: Are Russian diamonds the new "Blood Diamond"?

This is a completely different circumstance on a couple of different levels, though clearly it can be used as such by those seeking to demonize the natural diamond industry.

First, the so called "blood diamonds" were stolen from miners (or miners were enslaved) by renegade militia groups to fuel rebellion against established governments. Diamonds were the specific funding source that enabled these clashes.

In the case of broad Russian sanctions, the world community is bringing economic pressure to bear accross a wide variety of sectors. There is nothing special about diamonds or their connection to this conflict, other than it represents a pressure point designed to punish Russia for its aggression.

The only blood in this situation is on the hands of Putin and his minions. And we understand and support the world community's decision to include diamonds to the list of sanctioned products that might help bring an end to this horrible war.

 

[Karl_K]

This is a completely different circumstance on a couple of different levels, though clearly it can be used as such by those seeking to demonize the natural diamond industry.

First, the so called "blood diamonds" were stolen from miners (or miners were enslaved) by renegade militia groups to fuel rebellion against established governments. Diamonds were the specific funding source that enabled these clashes.

In the case of broad Russian sanctions, the world community is bringing economic pressure to bear accross a wide variety of sectors. There is nothing special about diamonds or their connection to this conflict, other than it represents a pressure point designed to punish Russia for its aggression.

The only blood in this situation is on the hands of Putin and his minions. And we understand and support the world community's decision to include diamonds to the list of sanctioned products that might help bring an end to this horrible war.

Well said.

 

[Rockdiamond]

Extremely well put @Texas Leaguer
Unfortunately, when we compare the economic impact of diamonds to oil…… diamonds can’t really cause any impact on this horrific war

 

[Garry H (Cut Nut)]

This is a completely different circumstance on a couple of different levels, though clearly it can be used as such by those seeking to demonize the natural diamond industry.

First, the so called "blood diamonds" were stolen from miners (or miners were enslaved) by renegade militia groups to fuel rebellion against established governments. Diamonds were the specific funding source that enabled these clashes.

In the case of broad Russian sanctions, the world community is bringing economic pressure to bear accross a wide variety of sectors. There is nothing special about diamonds or their connection to this conflict, other than it represents a pressure point designed to punish Russia for its aggression.

The only blood in this situation is on the hands of Putin and his minions. And we understand and support the world community's decision to include diamonds to the list of sanctioned products that might help bring an end to this horrible war.

Well said Bryan,
Consider the Congo, where cocoa and gold are the current blood fuelling products. Unless you read real news, not Instagram, FB TocTok etc you would not know

Congo says martial law has brought calm. Yet violence is rising

A Potemkin tour of eastern Congo fails to conceal the scale of bloodshed

www.economist.com