Israel uses conflict diamonds to finance Gaza genocide

Israel is among the top five exporters of polished diamonds despite lacking diamond resources of its own.

How does that work?

A report by the Kimberley Process—a global initiative to prevent blood diamonds from entering the market—revealed that six of the ten largest diamond-producing countries are in Africa, where many regions are still mired in conflicts over diamond-rich territories.

Over the past decades, Israel strategically expanded its presence in Africa through new investments and has profited significantly from Africa’s diamond mines.

Trading with military equipment, Israeli companies linked to the military allegedly gained access to diamonds and other minerals at significantly reduced prices, helping Israel’s diamond industry grow.

As a result, Israel’s diamond industry has been complicit in the blood diamond trade—a business stained with the suffering of millions.

The term "blood diamond" was introduced in the context of global human rights violations associated with the diamond trade, particularly in war-torn African countries.

The issue of blood diamonds and the illegal extraction of precious minerals in conflict zones such as the Democratic Republic of Congo (DRC) has been widely documented over the years, says Habibu Djuma, a researcher at Africa Coordination and Training Center (AKEM).

“These minerals are often extracted in conditions of extreme violence, with profits being used to finance armed groups that contribute to prolonged conflict,” says Djuma.

DRC is plagued by numerous armed groups, particularly in the eastern regions of the country, notably the M23 group, primarily active in North Kivu province, with other factions in Ituri and South Kivu provinces, according to Espoir Ngalukiye, a political activist based in DRC.

“These armed factions are notorious for their severe human rights abuses. They are involved in widespread violence, including the killing of civilians and sexual violence, committing numerous crimes against humanity,” Ngalukiye explains.

These diamonds were fueling civil wars and contributing to widespread suffering, particularly in countries like Sierra Leone, Angola, and the Democratic Republic of the Congo.

“Conflict diamonds, also known as blood diamonds, are diamonds that are mined in war zones and sold to finance insurgencies, warlords, or invading armies. The global community, through the Kimberley Process Certification Scheme, has taken steps to curb the flow of these diamonds, but still, illicit trade persists, especially in conflict areas like the DRC,” says Djuma.

Djuma mentions that Uganda and Rwanda, for example, have historically been implicated in cross-border smuggling of minerals from the DRC, and both countries have robust diplomatic and security ties with Israel.

“In this scenario, Israel’s influence would not necessarily be overt i.e. apparent. Instead, it would likely operate through private actors, businesses, or intelligence networks that benefit from instability in the region,” Djuma adds.

Accused of illegally importing diamonds

In 2009, a UN panel formally accused Israel of illegally importing diamonds from Africa, particularly from the Ivory Coast and Sierra Leone.

Israeli businessmen have been implicated in unethical practices like bribery and illegal resource extraction, which contribute to violence in diamond-producing areas.

Despite UN resolutions from the late 1990s aimed at preventing conflict diamonds from financing wars, Israel seems to continue benefiting from this trade.

The industry has for decades not only been robbing Africa of lucrative resources but also aids and abets Israel's killing of Palestinian civilians and its illegal occupation of Palestinian territories.

$1 billion to Israeli occupation forces

According to Djuma, Israel has long served as a crucial centre in the global diamond industry, with much of its economy linked to activities such as diamond cutting, polishing, and trading.

The DRC is one of the world’s largest diamond producers. It accounts for about 15 percent of the world’s diamond production, primarily through artisanal mining. In 2020, the DRC produced an estimated 12 million carats of diamonds, making it one of the top producers.

In 2023, the DRC accounted for 12 percent of the global diamond production, making it the fourth-largest diamond producer in the world.

“While there is limited direct evidence connecting Israeli actors to conflict diamonds in the DRC specifically, some reports suggest that Israeli companies and individuals may have benefited from access to conflict zones by leveraging relationships in neighbouring countries.”

Israel's diamond exchange, located in Ramat Gan near Tel Aviv, plays a significant role in the global diamond trade, specialising in the manufacture and polishing of diamonds and other precious stones.

By 2011, revenues from this industry accounted for 30 percent of the country's gross national income. In 2014 alone, the rough and polished diamond trade in Israel reached a staggering $9.2 billion.

In 2023, Israel’s diamond exports contributed significantly to its economy, particularly within the broader category of "gems and precious metals," which accounted for 12.3 percent of the country's total exports.

Notably, the diamond industry contributes around $1 billion annually to Israel's Defence Ministry, making it a huge source of funding for Israel’s illegal occupation of Palestinian territories.

A large proportion of those involved in this trade are reportedly former Israeli army generals and Mossad agents who have transitioned into arms dealing, using their profits to finance the construction of Israeli settlements in Palestinian territories.

According to Israel’s Foreign Ministry, diamond exports totalled $13 billion in 2006, with the US serving as Israel's largest customer, accounting for 63 percent of these exports.

In 2020, Israel exported $7.5 billion worth of diamonds, making it the world's sixth-largest diamond exporter.

In 2022, Israel's polished diamond exports reached approximately $9.16 billion, marking a sharp increase from $6.91 billion in 2021.

The country exported about 2.26 million carats of polished diamonds in 2022, with an average price of $4,058 per carat, making it one of the top exporters globally.

This complex relationship between the diamond trade and the Israeli arms industry also links to the financing of settlement projects in Jerusalem and the occupied Palestinian territories.

One prominent figure in this controversial network is Lev Leviev, a Jewish billionaire with Russian origins who served as an officer in the Israeli army before becoming a key player in the global diamond industry.

Leviev and his family have been accused of illegally smuggling $18 million worth of diamonds into Israel and are heavily involved in funding illegal settlement activities in the West Bank through the Israel Land Fund, an organisation with ties to extremist groups.

With a large portion of these profits funnelling into military operations and settlements, Israel's continued exploitation of African resources through the diamond trade has garnered criticism on both human rights and ethical grounds.

Corrupt Israeli figures

Benny Steinmetz, a prominent Israeli businessman, has also been deeply embroiled in controversies surrounding Africa’s diamond trade.

Arrested in Greek Cyprus in 2023, Steinmetz has faced multiple cases over his involvement in corrupt practices in African mining sectors.

In 2021, he was convicted in Switzerland for paying $8.5 million in bribes to secure mining rights in Guinea, specifically through payments to the wife of then-president Lansana Conté.

His company, BSG Resources, has consistently been linked to questionable deals in countries like the Democratic Republic of Congo (DRC), where it has exploited natural resources for profit.

Steinmetz's ties extend beyond Africa. His company is a major supplier for Tiffany & Co. and has reportedly supported the Israeli military, specifically the Givati Brigade, which has been accused of war crimes during Israel’s 2008–2009 Gaza assault.

Similarly, the Israel Diamond Exchange, another key player in the diamond industry, raised significant funds to support Israel’s military, particularly during the 2014 Gaza offensive.

Dan G, another Israeli businessman, has similarly drawn attention for his corrupt dealings in Congo’s diamond trade.

“There is a potential link between Israel and the current crisis in Congo. Dan Gertler, an Israeli citizen, has previously had multiple contracts with the Congolese government. These contracts covered various mineral resources, including diamonds sourced from the Kasai and Katanga regions,” says Ngalukiye.

Gertler played a central role in exploiting the DRC natural resources. As a close ally of former Congolese President Joseph Kabila, Gertler leveraged his connections to gain lucrative mining contracts in the DRC.

Gertler founded IDI (International Diamond Industries) in the late 1990s and secured a monopoly over the country's diamond exports.

This monopoly allowed Gertler to exploit DRC's diamond resources, profiting significantly from the country's vast wealth while local communities saw little benefit.

Under his influence, Israeli business IDI-Congo controlled around 70 percent of the profits from diamond mining, leaving the Congolese government with a mere 30 percent.

His company, Gertler Group, partnered with state-owned mining companies, often securing deals at prices far below market value through questionable practices such as bribery.

His operations in the DRC eventually attracted US sanctions due to accusations of corruption and undermining the country’s stability by contributing to the exploitation of its resources. ​