In response to the Russian-Ukraine crisis, U.S. President Joe Biden announced the list of the sanctioned entities early last week. The Department of the Treasury’s Office of Foreign Assets Control (OFAC) extended list of sanctions last Thursday, including the largest diamond miner, Alrosa.
Unlike other Russian private enterprises, Alrosa is 33% owned by the Russian government and another 33% owned by the local government of Sakha (Yakutia). Alrosa and its CEO, Sergey Ivanov Jr., the son of the former head of the Kremlin administration landed on the second round of U.S. sanctions as a result of U.S. government efforts to punish Russia for its invasion of Ukraine. The U.S. Treasury explained the diamond miner is responsible for 90 percent of Russia’s diamond mining capacity when justifying its decision to sanction Alrosa.
According to the Jewelers Vigilance Committee (JVC), the sanctions are not a total ban on doing business with Alrosa in the U.S., but prohibit transactions and dealings by those in the United States in new debt of longer than 14 days or new equity of Russian state-owned entities. The restrictions on Alrosa do not apply to goods purchased from Alrosa or Alrosa USA before 24 February. JVC suggests that American companies should read the lists of sanctioned companies and individuals. Jewelers of America (JA) released a statement on Monday recommending its members to stop buying or selling diamonds, precious metals and gemstones of Russian or Belorussian origin.
Lists of sanctioned companies and individuals:
https://home.treasury.gov/news/press-releases/jy0608
https://home.treasury.gov/news/press-releases/jy0602
(03-03-2022)
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