Antwerp Demands Government Help on Banks, Visas, Customs
January 19, 25
(IDEX Online) - Antwerp's diamond industry is demanding "decisive support" from the government after rough imports dropped by 35 per cent because of G7 sanctions on Russia.
The Antwerp World Diamond Centre (AWDC) is calling for access to Belgian banks (virtually impossible at present), more visas for specialist foreign workers and clearer agreements to speed goods through customs at the Diamond Office.
Karen Rentmeesters (pictured), new CEO at AWDC, yesterday (18 January) said government support was crucial to fostering a business-friendly environment and allowing Antwerp's traditionally conservative diamond sector to embrace sustainability and innovation.
"The diamond industry is experiencing a severe global crisis," she said. "Internationally, the sector is caught in a perfect storm, causing declining figures across all trading hubs. Weak consumer markets and competition from synthetic diamonds are leading to historically low demand for natural diamonds, resulting in rock-bottom prices.
"These factors inevitably affect Antwerp, one of the world's most important diamond trading hubs. Additionally, geopolitical tensions have resulted in G7 sanctions on Russian diamonds, which have particularly hurt the Belgian diamond industry.
"Looking at total import and export figures, which are heavily impacted by the absence of Russian goods, we see a 25 per cent decline compared to 2023, from $32.5bn to $24.4bn. Even in 2023, we observed a 20 per cent decline compared to 2022, as trade in Russian diamonds had already significantly decreased since the war began."
She also said global prices for rough and polished diamonds have plummeted, which was clearly reflected in Antwerp's figures.
The AWDC said: "Due to the ban on Russian diamonds, effective January 1, 2024, in all G7 and EU countries, Antwerp saw its total import of rough diamonds drop by 35 per cent."
Before the war in Ukraine, more than a third of all imported rough diamonds were of Russian origin, and many Antwerp diamond companies had built their business models around these goods.
"Newcomers face obstacles such as Belgian banks denying access, making it virtually impossible to open a local bank account,"said Rentmeesters.
"Companies struggle to obtain work visas for foreign employees with specific expertise, such as diamond sorters, or find that their international clients are hindered by visa requirements that prevent them from accessing their goods.
"At Diamond Office, which oversees the import and export of diamonds, the lack of clear agreements leads to delayed shipments and fines.
"The diamond industry is experiencing a severe global crisis. Internationally, the sector is caught in a perfect storm, causing declining figures across all trading hubs. Weak consumer markets and competition from synthetic diamonds are leading to historically low demand for natural diamonds, resulting in rock-bottom prices.
"These factors inevitably affect Antwerp, one of the world's most important diamond trading hubs. Additionally, geopolitical tensions have resulted in G7 sanctions on Russian diamonds, which have particularly hurt the Belgian diamond industry."