Press Release: Rapaport Requests OFAC Exemptions For Russian Sanctions

Rapaport Press Release, March 19, 2024, Las Vegas, NV … In response to US sanctions regulations effective March 1, Martin Rapaport, Chairman of the Rapaport Group, sent a detailed letter to the US Office of Foreign Assets Control (OFAC). The letter addressed several highly problematic issues related to sanctions restrictions for polished diamonds produced prior to March 1, 2024, and an exemption for all diamonds in the US, including recycled diamonds and pre-owned jewelry. OFAC quickly responded saying they will review the letter and revert if they have questions. 

In his letter, Martin Rapaport expressed strong support for efforts by the US government to reduce Russia’s revenue from the sale of diamonds. The letter requests a review and consideration of the “Rapaport US Diamond Protocol,” which will eliminate Russian diamond revenue while protecting the interests of the US diamond trade. To date this initiative is supported by 1,587 members of the trade and the American Gem Trade Association. 

“Our objective is to eliminate the flow of funds to Russia generated by the sale of Diamonds. It follows that Diamond imports or transactions that do not result in the transfer of funds to Russia should not be sanctioned. There should not be any sanctions restricting the trade or import of “pre-war” diamonds unless they involve current sanctioned entities. Furthermore, all polished diamonds purchased or in existence before March 1, 2024, should be exempt from sanction regulations as Russia has already received payment for them, said Martin Rapaport, Chairman of the Rapaport Group. 

Industry professionals, jewelers, and supporters of an ethical diamond trade are encouraged to register their support for the Rapaport US Diamond Protocol by visiting rapaport.com/sanctions-protocol. A copy of the March 18, 2024, letter OFAC is available here.