US extends permit for "import of certain diamonds" from Russia

According to the document, the license permits the import and entry into the United States of diamonds, including import into free trade zones, provided that the diamonds were physically outside the Russian Federation before entry and were not exported or re-exported from Russia from the relevant dates: from March 1, 2024 – for non-industrial diamonds weighing 1.0 carat or more; from September 1, 2024 – for non-industrial diamonds weighing 0.5 carat or more.

The import and entry into the United States of non-industrial diamonds of Russian origin remain prohibited in accordance with paragraph 1(a)(i)(A) of Presidential Executive Order E.O. 14068

The Ministry of Finance clarified that the license does not apply to other prohibited transactions under the Russian Sanctions Regulations (31 CFR part 587), including transactions with blocked persons, unless separately authorized.

Recall

On December 6, 2023, US President Joe Biden and the leaders of the Group of Seven (G7) virtually met with Ukrainian President Volodymyr Zelenskyy. As a sign of solidarity and support for Ukraine, they agreed to introduce a new ban on Russian business. The restrictions will affect the Russian diamond business. As a result, the G7 countries agreed to limit the import of non-commercial Russian diamonds by January 2024, including introducing a reliable certification system for rough diamonds by September 2024.

In March 2024, Canada and its G7 partners introduced additional restrictions on the import of Russian diamonds to further reduce Russia's diamond export revenues.

G7 and EU sanctions on Russian diamonds led to the loss of key markets. It was reported that layoffs began at the largest diamond mining company in Russia. The company's management explained that it was reducing production, closing mines, and laying off some personnel due to a "deep crisis in the market."