Russian diamonds in Switzerland
Keystone
"Russia is the world's largest exporter of diamonds. Russian gems have not until now been subject to any European sanctions, but the situation will change this January after the adoption by the EU of a 12th package of measures against Russia. Last year, several kilos of Russian diamonds landed in Switzerland.
This content was published on January 2, 2024 - 08:30
January 2, 2024 - 08:30
Gabriel Tejedor/edel, RTS
The export of Russian diamonds is a business that brings in billions of francs and which has, until now, ignored the consequences of the invasion of Ukraine.
Russia ranks first in the world among exporters and volumes have hardly fallen since the start of the war, reaching some 3.6 billion euros (3.4 billion francs at current prices) in 2022. In Europe, the sector has until now escaped any sanctions.
The Alrosa company, which controls 90% of this market, nevertheless contributes directly and indirectly to the Russian war effort. Firstly because it is two-thirds in state hands, then because it finances the military submarine which bears its name: the Alrosa, deployed in the Black Sea.
Presence in Switzerland
Who are these Russian diamonds sold to? Are any arriving on the Swiss market? In 2022, Switzerland directly imported 22 kg of these precious stones, including at least 9 kg of rough diamonds in Geneva, according to information collected by the RTS show A Bon Entendeur.
But direct imports represent only the tip of the iceberg. Indeed, Russian diamonds are widely exported to India, Dubai or China before being re-exported around the world, an operation through which the mention of their origin disappears.
A new actor is also emerging in this role of intermediary between Russia and the West: Armenia, where the stones are polished and cut.
“Due to the situation in Ukraine, the emergence of new markets and thanks to the Armenian tradition of cutting and polishing diamonds, our diamond sector is developing,” explains Arevik Margaryan, head of the mining sector of the Ministry of Armenian economy.
“The rough diamonds all come from Russia. Polished diamonds come from Russia, but also from the United Arab Emirates, Belgium and India.”
Asked about the customers of diamonds cut in Armenia, she replied that they were “Hermès, Tiffany, Patek Philippe etc.”.
“This information was passed to me by the diamond companies that work with these brands. It is thanks to the professionalism of our master craftsmen that Patek Phlippe and others work with us,” she explains. In an article in the specialized press, she also mentions the name Cartier.
Origin difficult to certify
So does Swiss watchmaking use Russian diamonds? “Patek Philippe places great importance on ethical sourcing and corporate responsibility and is aware of the complexity of the global diamond market,” responds the Geneva company laconically.
Cartier, for its part, relies on its suppliers. “Our suppliers certify that the polished diamonds we purchase were not mined in Russia after the start of the war. One of our suppliers which has a production site in Armenia was recently controlled by an independent entity,” specifies the jeweler and watchmaker.
In fact, tracing the origin of diamonds is extremely complex. “I couldn't say that there are no Russian diamonds here,” admits Ronny Totah, founder of the specialist show GemGenève, interviewed as part of the event.
“When the Swiss go to buy stones cut in India, for example, it is difficult to know where the stone comes from,” he adds. I haven't found the solution."
For Hans Merket, researcher at the International Peace Information Service (IPIS) and diamond specialist, the Swiss situation is of concern. “In Switzerland, particularly in the watch industry, we use a lot of small diamonds. Therefore, it is difficult to do without Russian diamonds,” he explains.
“Overall, Russia is considered to account for a third of global diamond production. But in the small diamond sector, Russia accounts for 60 or 70% of production. So the watch industry depends heavily on these Russian diamonds.”
Today, the noose is tightening around Russian diamonds. After months of discussion, the G7 announced progressive restrictions on their import from January 2024. And the 12th package of sanctions from the European Union against Moscow specifically targets Russian diamonds.
But the implementation of a control system turns out to be particularly ... "
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