Scandals linked to blood diamonds are coming back to Antwerp with the war in Ukraine. Zelensky speaks: «peace is more valuable than diamonds in shops»
Is Antwerp still the diamond capital? Hoge Raad voor Diamant neighborhood (HRD)
Antwerp is the historical capital of diamonds. In particular the Hoge Raad voor Diamant neighborhood (HRD) is where most of the world diamond trade happens. Its status is now under threat: from the dilemma of gems coming from Russia to Dubai competition, the diamond capital may be in check.
The Antwerp diamond’s history is more than five hundred years old and intertwined with that of local Jewish families – those that were left in the country after the travesties of WWII. In just one small neighborhood, close to the station, a diamond-related business worth an estimated two hundred million euros happens every single day.
Even though Dubai and Mumbai are both starting to take up space in the industry and potentially threatening Antwerp’s supremacy, data say around eighty-six percent of the rough diamonds in the world have been in HRD at least once. According to the Antwerp World Diamond Centre, diamonds account for around five percent of Belgium’s exports and generate about ten thousand jobs in Antwerp alone. The industry still looks pretty solid, but in the past few years it has been shaken by scandals.
Diamond controverse industry: colonialism and blood-diamonds
Companies are united in a Trade Organization representing one thousand six hundred businesses, with more than six thousand workers. Their fitting slogan is «Diamonds & Antwerp, it’s in our Dna». The industry does not always mean well. In the past decades, it went through a series of scandals and dark times.
Leader families have tried it all to get their reputation back – a story well told by the recent Netflix Series Rough Diamonds. The world and its politics keep intruding. First, in the Nineties, there were the links to European colonialism. Diamonds keep coming from those same routes, especially from what is now the Democratic Republic of the Congo. Often at the expenses of the local population.
The Kimberley Process Certification Scheme
Then, in the early two-thousands, the discovery of so-called blood diamonds took over the public attention. The diamond trade, it turned out, was fueling conflicts in several African countries. As a result, the UN issued a resolution for the diamonds to be marked as conflict free: the Kimberley Process Certification Scheme.
The industry is adapting as much as it can, but it remains controversial in the public eye. Some argue that the Kimberly Process is not up to the task. In 2018, almost two decades after the resolution, residents working in a mine in Zimbabwe reported suffering abuses like torture and forced labor.
Luxury in jeopardy: synthetic diamonds on the rise
The luxury status of the diamond business, and its prices, have one characteristic to thank: scarcity. High demand and low availability is what makes the price go up. The diamond industry always relied on this ratio. The slogan «a diamond is forever» and the links to a commercial ideal of romantic love built by advertising did the rest. The diamond he gave to her was the patriarchal unit through which a marriage was measured.
As Martin Rapaport, maverick of the diamond trade puts it: «the diamond is a symbol of commitment, it has to be expensive, it has to have value. The woman projects the value of the diamond onto herself». Today, this decades-long, apparently unbreakable bond is in jeopardy.
Diamonds – The Threat of synthetic gems
Not only synthetic gems are less expensive and more accessible, it looks like they could be more ethical as well. Since they are lab-produced and do not imply any mining, they inherently avoid the most common violations of human rights in the industry, such as child labor.
«We talked about a good game, but we didn’t deliver on it. I want to end my life with clean hands. I was so conflicted in so many ways and I’d like to do something constructive for the world», said Alexander Weindling, third-generation diamond and jewelry merchant in Antwerp, who went off to fund his own synthetic lab.
Russia – one of the leading diamond producers in the world
With the Russian invasion of Ukraine, a new dilemma came to Antwerp. Russia is in fact one of the leading diamond producers in the world. The import of other luxury goods coming from Russia, like the proverbial caviar and Vodka, have been banned in the past year. Yet no one seems to be considering diamonds – there is no interest in bringing up the issue.
Last year, roughly one and a half billion-dollar worth of Russian diamonds were imported by the EU. Once again, Antwerp is on the verge of losing its hardly regained diamond reputation. Ukraine president Volodymyr Zelensky himself addressed the Belgian parliament: «peace is more valuable than diamonds in shops».
The industry needs Russian diamonds to survive
Given the public criticism that is once again on the rise, the issue of diamonds coming from Russia is critical. On the one hand reputation suffers, but on the other it seems like Russian gems are vital for the industry.
«It’s not something we would ever say to people, » commented a source from within the Antwerp diamond industry, speaking anonymously, «but to survive we sometimes do have to buy Russian diamonds». He continued: «Everybody hates and is against Russia in this war, but sometimes personal feelings have to be put aside». People are in business to do business, and «we have to be opportunistic».
Something is still changing: business linked to Russian diamonds made up for the twenty-five percent of Antwerp business pre-war, and it is now down to five percent, even though there are no sanctions. Yet, it seems unlikely that it will go down to zero.
A spokesperson for the AWDC said that «If you were a small diamond trader and you have always traded in Russian diamonds, for example, and suddenly you can’t sell it anymore…you’re out of business». A shopkeeper added that «the funniest thing is that African diamonds are more war-related than Russian ones». Though funny might not be the most fitting choice of words.
Shoppers and shopkeepers don’t care, they just want diamonds
One of the main strong suits of the diamond trade in the HRD is the variety of choice. You will find diamonds for any taste. And coming from anywhere in the world. This is also one of the reasons why the Kimberly Process resolution is not being enforced properly. «We don’t know, because we don’t care» where the gems come from, declared a shopkeeper.
The price is not affected either: other gems, like emeralds, can vary in price according to where they come from – while diamonds just have to sit in the window, no questions asked. Among all these different tensions, what is for sure is that the industry is changing, and it is changing fast.
It is up for the Antwerp district to determine whether, to remain on top and competitive with other markets on the rise, it is a better choice to embrace a transformative mindset or stick to traditions.
Hoge Raad voor Diamant neighborhood
Area within the city of Antwerp, Belgium. With an area of about one square mile. It is the largest diamond district in the world with a turnover of 54 billion dollars.
