Botswana and Angola, the world’s 2nd and 4th largest diamond producers, have recently taken significant steps to support the Western sanctions against Russia’s diamond exports. This coordinated effort aims to limit Russia’s access to the global diamond market and undermine a key revenue source for the Kremlin amid its ongoing invasion of Ukraine.
Diamonds are a major export and income generator for Russia, which is the world’s largest diamond producer by volume. In response to Moscow’s military aggression, the EU and G7 nations have imposed strict sanctions to restrict Russia’s ability to profit from diamond sales. In late 2023, the EU banned the export of Russian diamonds to Europe, followed by a G7 import ban starting January 1, 2024. The G7 also enacted a ban on Russian diamonds processed in third countries, effective March 1, 2024.
To successfully implement these sanctions, robust traceability systems must be put in place to prevent Russian diamonds from being mixed with stones from other sources and entering Western markets. This is where Botswana and Angola have stepped up their efforts.
Last week, Botswana agreed to begin certifying the origin of its rough diamond exports in early 2025. This system, developed in partnership with the Antwerp World Diamond Centre (AWDC), will assign unique identifiers to Botswana’s diamond shipments, helping to segregate them from potentially sanctioned Russian diamonds at major trading hubs like Dubai or polishing centers such as Surat, India.
In addition to Botswana’s move, Angola has also taken steps to distance itself from Russian diamond interests. Previously, Russia’s state-owned Alrosa held a 41% stake in a joint venture with Angola’s national diamond company. However, Angola has now announced that an Omani investment fund will purchase Alrosa’s stake, a decision that Angola’s Mineral Resources Minister Diamantino Azevedo stated was necessary to maintain the country’s credibility in the international diamond market.
The diamond industries of both Botswana and Angola are vital to their respective economies. In Botswana, diamond exports made up 63% of the country’s total exports in 2023, while in Angola, diamonds represented almost 10% of its total exports. By taking these coordinated actions, Botswana and Angola are not only supporting the West’s efforts to isolate Russia economically but also safeguarding their own diamond-dependent economic interests.
This alliance between the world’s 2nd and 4th largest diamond producers represents a significant blow to Russia’s ability to maintain its dominance in the global diamond trade. As the sanctions continue to tighten, the coordinated efforts of Botswana and Angola will play a crucial role in ensuring that Russian diamonds are effectively excluded from Western markets, further constraining a key revenue stream for the Kremlin.
