EU delays its diamond traceability initiative again

The European Commission's mechanism for tracing imports of rough natural diamonds into the EU – which had been due to come into effect on March 1 – has been postponed once again.

The mechanism – which has been set up to combat the trade in conflict diamonds and reinforce sanctions against Russia in the wake of its invasion of Ukraine – is now due to come into effect on January 1, 2026.

The latest delay was announced in an update on the EU's adoption of a 16th round of sanctions against Russia which are designed to "further ramp up pressure on the aggressor" and is reflect its "unwavering commitment to a just and lasting peace for Ukraine.

"Addressing governance issues associated with the traceability system will require ongoing cooperation with the G7 and third countries," said the Commission. The mechanism will also link non-Russian, G7- G7-certified rough diamonds to the polished diamonds derived from them, a measured intended to significantly enhance transparency within the sector.

"In order to further the facilitation of the implementation of those measures and continued engagement with the G7 and third countries, continued monitoring of the level playing field among G7 partners with regard to diamond-related measures should be conducted," it added.

The decision to postpone the system was welcomed by Antwerp World Diamond Centre (AWDC), the industry organization representing the interests of Belgian diamond companies, which said it was "an important signal, as it grants diamond companies the necessary time to thoroughly prepare for its implementation."

Still, it also said it remains concerned about the nature and governance of the traceability mechanism as well as the uniform enforcement of these measures and "urges the G7 once again to ensure a level playing field across all participating countries."

Russia continues to export large volumes of diamonds to countries outside the G7, which allows them to still enter the polished diamond markets, according to AWDC chief executive Karen Rentmeesters.

Some diamond companies have already developed traceability systems for diamonds to tackle the illicit trade in conflict or blood diamonds, which are mined in war zones. Sustainability is also a big issue for consumers, who don’t want stones or jewellery that contribute to environmental degradation through depletion of natural resources, polluting practices or an impact on biodiversity impact, for example, and/or human rights and labour abuses.

De Beers has developed a blockchain-based system called Tracr that gives each diamond a unique identity as it is mined and activated it in response to the Russian invasion. However, as yet there is no single platform ready to be deployed across the industry at scale.

The new traceability scheme will run in tandem with the Kimberley Process Certification Scheme, one of the first processes set up in the mineral supply chain with the aim of preventing conflict diamonds, in which producing countries certify the conflict-free status of rough diamonds and produce chain of custody documentation.