EU to lift sanctions on Zimbabwe diamonds

The European Union, under pressure from Belgium which hosts one of the largest diamond trading centres in the world, has announced plans to lift sanctions on Zimbabwe’s diamonds from Marange but has not given a date.

The European Union had promised to review the sanctions if Zimbabwe’s elections were declared free and fair after Belgium insisted that the sanctions must be lifted earlier this year.

The African Union and the Southern African Development Community have cleared the elections but the United States and the European Union have declared that they were not.

The spokesman for the EU foreign policy chief Catherine Ashton, however, said today that there was no indication that the Zimbabwe Mining Development Corporation, the government company involved in joint ventures with diamond companies at Marange, was linked to any acts of violence during the elections.

Zimbabwe is now the fourth largest diamond producer in the world but it has literally been giving away its diamonds because of sanctions imposed by the United States and the European which continue to bar the sale of diamonds from Marange although the mines were certified by the world governing body two years ago.

Zimbabwe has been selling its diamonds at less than 25 per cent of the normal price which could have cost the country US$1.9 billion in lost revenue.

Zimbabwe sold 12.06 million carats last year but earned only US$644 million realising US$53.40 a carat, while Angola sold 8.33 million carats for US$1.11 billion realising an average price of US$133.25 per carat. South Africa realised an average price of US$145.54 per carat.

It is not clear what the impact of the lifting of sanctions by the EU will be because the United States still maintains its sanctions on Zimbabwe. All financial transactions have to go through New York which could still prevent transfers to Harare.

(49 VIEWS)