US OKs Importing Some ‘Grandfathered’ Russian Diamonds 

The US government will allow the import of diamond jewelry and certain loose diamonds from Russian sources, provided the purchases occurred before this year’s round of sanctions. 

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued two licenses on Friday explaining the new guidelines for “grandfathered” goods, meaning rough or polished diamonds of either Russian or unknown origin that were bought before the government sanctions went into effect on March 1.  

Previous rules had put forth guidelines for diamonds purchased after that date, but they failed to address earlier purchases that had not yet reached the US, including rough that had been sent to India for cutting and polishing.   

General License No. 103 allows the import of “diamond jewelry that was physically located outside of the Russian Federation prior to March 1, 2024,” OFAC said Friday. This new authorization does not negate compliance with other reporting laws already in place, the government stressed. 

Meanwhile, General License No. 104 relates to nonindustrial loose diamonds. Any diamond of 1 carat or more that was located outside Russia before March 1 is permissible to import, according to OFAC. For diamonds between 0.50 and 1 carat, the cutoff date is September 1. 

The government did not offer any further clarifications, including whether importers would need to show proof of the goods’ locations on the given dates. 

The updated guidelines provide answers to some of the points left unclarified in the initial March 1 sanctions. Currently, the US sanctions prohibit bringing in Russian-origin diamonds of 1 carat or more, including those that have undergone “substantial transformation” — aka manufacturing — in another country. On September 1, the rules will expand to include diamonds of 0.50 carats and above.

Image: Rough diamonds. (Alrosa)