The US is set to close a significant loophole allowing the importation of Russian diamonds that undergo substantial transformation in another country, IDEX Online reports.
The Office of Foreign Assets Control (OFAC) within the Treasury Department announced new measures, prohibiting rough diamonds of 1-carat or above starting from March 1 and those weighing 0.5 carats or more from September 1.
Effective immediately, the sanctions will encompass diamonds sourced, extracted, produced, or manufactured wholly or partially in the Russian Federation, even if they undergo substantial transformation outside of the country.
Sanctions on Russian diamonds were initially imposed by the US nearly two years ago in response to the invasion of Ukraine. However, the impact was limited due to the majority of the world’s diamonds being cut and polished in India. The move aligns the US with other G7 countries, which initiated sanctions on Russian diamonds from January 1.
