The US Treasury’s Office of Foreign Assets Control (OFAC) has confirmed that new sanctions against the Russian diamond industry will come into effect on 1 March.
In a determination dated 8 February, OFAC deputy director Lisa Palluconi states that diamonds extracted, produced, or manufactured wholly or in part in the Russian Federation are prohibited from importation into the US.
The prohibitions apply to non-industrial diamonds weighing one carat or greater from 1 March and non-industrial diamonds weighing 0.5 carat or greater from 1 September.
“As a result, the importation and entry into the United States, including importation for admission into a foreign trade zone located in the United States, of such non-industrial diamonds is prohibited, except to the extent provided by law, or unless licensed or otherwise authorised by the Office of Foreign Assets Control,” the determination reads.
The determination states that these prohibitions also apply to diamonds that have been ‘substantially transformed’ (cut and polished) outside Russia. It did not clarify whether importers must provide evidence that their polished diamonds weren’t mined in Russia.
The De Beers Group recently expressed concern over the ‘unintended consequences’ of G7 sanctions against the Russian diamond industry.
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