{"id":6577,"date":"2022-04-27T00:00:00","date_gmt":"2022-04-27T00:00:00","guid":{"rendered":"https:\/\/uwscinm1cs.wpdns.site\/blog\/the-retailer-s-guide-to-dealing-with-russian-diamonds\/"},"modified":"2026-01-06T09:54:19","modified_gmt":"2026-01-06T09:54:19","slug":"the-retailer-s-guide-to-dealing-with-russian-diamonds","status":"publish","type":"post","link":"https:\/\/rapaport.com\/trade\/blog\/the-retailer-s-guide-to-dealing-with-russian-diamonds\/","title":{"rendered":"The Retailer\u2019s Guide to Dealing with Russian Diamonds"},"content":{"rendered":"

With U.S. sanctions on Alrosa aimed at stemming the tide of funds to Russia that are fueling its war on Ukraine, American firms \u2013 including retail jewelry stores \u2013 must immediately cease all transactions with or benefitting the Russian diamond miner.<\/p>\n

Specifics of this mandate give merchants some generous leeway to avoid a total disruption of business, but sanctions experts advise jewelers to sell what\u2019s left of Russian stock, stop importing from Alrosa sightholders altogether, and find new sources to replace Russian diamonds.<\/p>\n

\u201cThe least risky choice for businesses to make is to tell your suppliers that you no longer want to sell Russian diamonds,\u201d<\/strong> explains Sara Yood, ESQ., deputy general counsel for the Jewelers Vigilance Committee (JVC).<\/p>\n

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ANATOMY OF THE SANCTIONS<\/strong><\/p>\n

According to the U.S. Treasury, Alrosa, which is partially owned by the Russian Federation, is the world\u2019s largest diamond mining company and is responsible for 90 percent of Russia\u2019s diamond mining capacity.<\/p>\n

On April 7, 2022, the U.S. Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC) placed Alrosa on the Specially Designated Nationals (SDN) list. This means that U.S. firms can not directly or indirectly purchase rough or polished diamonds from Alrosa or any firm owned 50 percent or more by it. Additionally, a so-called \u2018loophole\u2019 in a March 11 executive order stating that Russian diamonds cut and polished in other countries were (and still are) legal to import, should be scrutinized by every American jewelry merchant.<\/p>\n

HOW DOES THIS AFFECT RETAILERS?<\/strong><\/p>\n

\u201c[That March 11 order] intended to give the industry time to figure out how to handle its inventory and sourcing,\u201d says Brad Brooks-Rubin, senior advisor at The Sentry, an organization that investigates predatory networks and kleptocracies. \u201cNow every retailer should be asking suppliers \u2018Am I sourcing Alrosa diamonds\u2019? You could face penalties or blocked goods if you don\u2019t stop.\u201d<\/p>\n

Member Alerts from the Jewelers Vigilance Committee (JVC) outline key facts every U.S. jeweler should know.<\/p>\n