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New York, NY--The G7 leaders announced on February 24 that they would be working on additional measures to address rough and polished diamonds of Russian Federation origin. This announcement was made on the first anniversary of the illegal Russian invasion of Ukraine and subsequent unjustified war. The forthcoming sanctions are expected to address the "substantial transformation" pathway that still allows Russia-origin diamonds to enter the U.S. if cut and polished in another country.

[Image via Flickr Commons]

In a statement, the G7 leaders' announced, "given the significant revenues that Russia extracts from the export of diamonds, we will work collectively on further measures on Russian diamonds, including rough and polished ones, working closely to engage key partners."

The release noted that no specific guidance is available for U.S. businesses to implement. However, the Jewelers Vigilance Committee (JVC) has received information that restrictions will likely target polished diamonds, regardless of where they are cut and polished. Any suppliers abroad who are still purchasing diamonds from Alrosa, a group of diamond mining companies and a Russian state-owned enterprise, will likely need to begin segregating those goods to ensure they do not reach the U.S. market and should be prepared to make Customs declarations that their goods do not contain Russia origin products.

"JVC expects that the process to create and implement regulations will take a few months and looks forward to working with the U.S. Department of State and other U.S. government partners to ensure that the industry is fully informed of their responsibilities," says Tiffany Stevens, CEO & General Counsel Jewelers Vigilance Committee, in the news release. "In the meantime, JVC will continue to educate the trade on its role in ensuring that U.S. dollars do not go to fund the ongoing unjustified war in Ukraine."

U.S. businesses should review their sourcing protocols, discuss requirements with suppliers, and evaluate supply chains using due diligence guidance until these sanctions are developed and implemented. JVC will continue to update with further developments as it progresses.

On Friday, March 17, JVC will host its annual luncheon at the InterContinental Barclay, with State Ambassador James O'Brien as the Keynote Speaker. O'Brien has served as the Head of Office Sanctions Coordination since April 2022 and will be able to speak to those in attendance in-person about the ongoing Russian diamond sanction developments. For information regarding the luncheon, visit https://jvclegal.org/annual-luncheon-2023/.