The long-awaited Russian diamond sanctions are likely to face another delay, with sources suggesting that the full traceability system originally set for March 1 will not be ready in time.
The European Union (EU) had already pushed back its requirement for origin verification on diamonds of 0.5 carats or more from September 1, 2024, to March 1, 2025. Now, reports indicate that the system remains bogged down by technological hurdles, policy debates, and shifting U.S. foreign policy under the new administration.
Although trials have demonstrated that rough diamonds can be tracked, scaling a global system for rough-to-polished traceability remains a major challenge. Efforts are underway in Botswana and Namibia to establish rough diamond tracking nodes, but progress has been slow.
Another key issue is the handling of the data ledger for diamond imports and exports. Questions remain over who will store the data and who will have access—raising concerns about potential U.S. law enforcement scrutiny, including investigations into money laundering.
While the EU has driven the sanctions discussion, experts argue that without strict U.S. enforcement, the measures will be ineffective. The new U.S. administration has sent mixed signals on the issue—Vice President J.D. Vance has expressed skepticism over continued U.S. support for Ukraine, while President Trump recently stated that he would expand sanctions if Russia does not end the war.
Adding to the controversy, the EU recently approved an $85 million grant for Diamond Foundry’s lab-grown diamond facility in Spain. Although this decision was made by a separate department, some critics believe it undermines African diamond-producing nations, which have been closely following the sanctions debate.
Despite the delays in full traceability, Russian diamonds over 0.5 carats have been banned from entering the U.S. since September, with limited exceptions. However, the lack of an effective global system leaves significant loopholes open, raising doubts about the true impact of the sanctions.