The United States Treasury Department has extended a license allowing the import of certain Russian diamonds until September 2026. This move continues a notable exception to sanctions imposed on Russia, the world’s largest producer of rough gems, due to the Ukraine conflict.
The sanctions, introduced by the G7 and the EU, took effect in January 2024 and included a direct embargo on diamonds from Russia. Later, Washington introduced a temporary waiver permitting limited imports under specific conditions. The newly issued license covers non-industrial diamonds over one carat that were outside Russia from March 2024 and not re-exported since, as well as stones above half a carat that met the same conditions starting last September.
The waiver replaces an earlier one issued in August 2024, which was set to expire. The Treasury Department emphasized that the waiver does not lift the broader ban on Russian-origin diamonds or transactions with sanctioned entities.
The restrictions on Russian gems have significantly impacted the global diamond market. Before the sanctions, Russia accounted for about a third of global diamond output. In response to the ban, Moscow has redirected its diamond trade to countries such as China, India, the UAE, Armenia, and Belarus. Russia has described the sanctions as evidence that Western nations have largely exhausted their options for further measures.
The global diamond market has been shaken by the restrictions, with significant effects on the industry. The EU, in particular, has been affected, with its “diamond mecca” experiencing difficulties due to the sanctions. The extension of the license by the US Treasury Department will likely have further implications for the market, as the industry continues to adapt to the changing landscape.
The situation highlights the ongoing impact of the Ukraine conflict on global trade and economies. As the sanctions continue to affect various industries, including the diamond market, countries are seeking alternative trade partners and routes. The latest move by the US Treasury Department is a significant development in this context, and its effects will be closely watched by industry stakeholders and observers alike.
