Russia intends to “circumvent” new European sanctions on the diamond trade

The day after the adoption by the member states of the European Union of new sanctions against Russia, the Kremlin warned, Tuesday, December 19, that it would “get around” measures targeting the lucrative diamond trade, which the Twenty-Seven see as a source of financing for its offensive in Ukraine.

These new sanctions prohibit the importation from Russia of natural or synthetic diamonds and jewelry from January, and that of Russian diamonds cut in other countries from September.

Kremlin spokesman Dmitry Peskov said Tuesday that the ban was “predictable”and that the sector was there “prepared”. “I think there are possibilities to circumvent these sanctions. There are some, and they will be implemented (…) to guarantee our interests”he added.

President Vladimir Putin regularly insists that these sanctions fail to bring Russia’s economy to its knees, pointing to GDP growth. But inflation is high, and Russian industry is driven by state military orders. The country is facing labor shortages, due to the sending of hundreds of thousands of men to the front, and the flight of many other Russians seeking to escape.