The European Union confirmed this Monday the twelfth sanctions package targeting Russia, focusing on restricting the diamond trade. The core move is a ban on the purchase and export of Russian diamonds, a key revenue stream that helps finance Moscow’s war in Ukraine.
The measure is set to take effect once the verification mechanism established by the G7 comes into force on January 1. By tracing Russian diamonds through the entire global production chain, the move aims to ensure the sanctions are properly enforced at every stage.
European Commission President Ursula von der Leyen stated online that this package strengthens support for Ukraine, praising the Spanish presidency for coordinating negotiations on the new measures. The message underscored continued solidarity with Ukraine in its struggle for sovereignty.
“I welcome the political agreement on the 12th sanctions package,” one official remarked. The EU leadership reiterated a commitment to Ukraine, highlighting the ongoing stance against attempts to bypass sanctions and the expansion of restrictions to additional products, including diamonds.
— Ursula von der Leyen (@vonderleyen) December 18, 2023
The EU’s foreign policy chief, Josep Borrell, emphasized that the bloc will stay by Ukraine and support its fight for freedom and independence, reflecting a broad coalition approach to deter aggression.
Belgium removed the veto
Belgium, by coordinating a traceability framework with the G7, has played a pivotal role in enabling sanctions on Russian diamonds that pass through this country. Belgium’s leadership in the global gemstone sector helped lift prior vetoes and push for a united European stance.
The EU will ban the sale, import, and direct and indirect transfer of diamonds that originate in Russia or transit through Belgium, tightening the controls across the diamond pipeline.
According to the EU Council, sanctions on Russian diamonds processed in third countries will be rolled out gradually beginning March 1 and will be fully effective by September.
Preventing evasion remains a key aim. The new package includes measures to curb circumvention by tightening contractual obligations for European exporters to prohibit the sale of sensitive products to Russia, including weapons, aircraft equipment, and items used in Russia’s military systems in Ukraine.
The EU identified 29 new entities involved in such exports to Russia and expanded information-sharing mechanisms to combat illegal oil and diesel shipments. A cap on oil-related trade with Russia, coordinated with the G7, reinforces these controls.
Additionally, Russian citizens are prohibited from holding controlling positions in entities that provide crypto assets to other Russians, and new notification requirements were introduced for transfers to financial institutions outside the EU that are controlled by Russian entities or residents.
New restrictions also target imports of certain Russian goods such as pig iron, copper wire, aluminum, plates, pipes, and related products valued at around 2.2 billion euros. There is also a 12-month transition period for the ban on imports of liquefied propane as part of the broader shift in trade policy.