The Grandfathering Principle
Antwerp World Diamond Centre hold online seminar explaining ‘grandfathering’ principal
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The Antwerp World Diamond Centre have reported on an update on the Grandfathering Principle that was announced in mid-July as part of G7’s 14th sanction package against Russia, enabling diamond companies to regularise their ‘existing stock’. Specifically, it concerns stock of non-industrial, natural and synthetic, rough and polished diamonds of Russian or unknown origin, which were in a company's possession before the sanctions measures against Russia came into force, i.e., before 1st January 2024.
These goods, which fall under the Grandfathering Principle, are exempt from the ban on Russian diamonds and are not affected by G7 sanctions because they were owned before the sanctions came into effect. Sanctioning these goods and prohibiting their trade would impose an unfair and severe financial burden on diamond companies without significantly impacting Russia's revenues.
Currently, the FPS Economy - with the help of AWDC - is finalising an unambiguous and clear procedure that would make the 'Grandfathering' principle a reality. From 1 September 2024 onwards, Belgian-registered diamond Companies and foreign diamond companies can effectively have their existing stock (pre-1 January 2024) regularised through the Diamond Office in Antwerp.
The finalisation of the Grandfathering-Principle marks a significant milestone for industry. This achievement follows extensive and challenging negotiations led by AWDC.
As a dedicated service provider to the Antwerp Diamond Industry, AWDC is committed to assisting regularising goods that fall under the category ‘grandfathering’. To ensure a smooth process, the AWDC are developing comprehensive document outlining the entire Grandfathering procedure and a clear decision tree to guide through the process step by step.
For those interested, the AWDC will be hosting a live seminar explaining the Grandfathering Principle and how AWDC can guide you through this process, on Tuesday 27 August, from 10 am to 12 noon at De Beurs voor Diamanthandel, an in-person event.
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