OFAC, the US Office of Foreign Assets Control, has blocked $26 million of payments “made by Indian businesses attempting to buy rough diamonds from Russia,” according to reports quoted by IDEX Online.
In recent months, OFAC has reportedly instructed banks to stop the transfer of funds, “mostly from UAE subsidiaries of Indian companies.” Though neither India nor the UAE has sanctioned rough diamonds from Russia, the US has – although the ban does not apply to diamonds cut and polished outside Russia.
Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), told Economic Times: “We are trying to explain to OFAC that the payments were made to non-sanctioned entities and even to some Russian entities well before the sanctions came into place. There is very little direct import of diamonds from Russia.”
According to figures published by the Gem and Jewellery Export Promotion Council (GJEPC) for April to June, India has imported $1.3 billion of rough per month, on average, from all sources.
