US Closes Loophole on Russian Diamonds
December 27, 23
(IDEX Online) - The US is closing the loophole that has, for almost two years, allowed the importation of rough diamonds from Russia as long as they are cut and polished in India or elsewhere.
A new White House Executive Order broadens existing restrictions immediately to include diamonds and other Russian goods "even if these products are then transformed in a third country".
President Joe Biden signed the order on Friday (22 December). The US imposed a ban on rough diamonds from Russia on 11 March 2022, just two weeks after Russia invaded Ukraine, but left the door open by excluding stones that had been "substantially transformed".
The new restrictions were announced after the G7 - of which the US is a member - finally said it would impose a ban on Russian diamonds, which is due to come into force on 1 January.
US national security advisor Jake Sullivan (pictured) said in a statement: "We are sending an unmistakable message: Anyone supporting Russia's unlawful war effort is at risk of losing access to the U.S. financial system."
It will come as a blow to India's diamond industry, with the US accounting for 45 per cent of all its exports.
"To curtail Russia's revenue from other sectors, the E.O. (Executive Order) will also make it more difficult for specific Russian goods to enter the United States after being modified in a third country," the White House said in a statement.
"In the coming months, the United States and our partners intend to introduce import restrictions on certain diamonds mined, processed, or produced in Russia, building on an existing U.S. ban on the importation of Russian-origin diamonds."