SourcingFeb 15, 2022
Supply Constraints Impact Alrosa’s January Sales Policies & IssuesFeb 25, 2022
Alrosa Lands on US Sanctions List After Russia Invades Ukraine
The sanctions are not a total ban on doing business with Alrosa in the U.S., but they still will have an impact on the jewelry industry.
Washington, D.C.—The U.S. government has sanctioned diamond miner Alrosa as part of its efforts to punish Russia after its invasion of Ukraine Thursday.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) released an extended list of sanctions on Thursday, building on those imposed earlier this week to target the Russian financial system, including all its largest financial institutions and the ability of state-owned and private entities to make money.
Named on the list is Alrosa, the world’s biggest diamond producer by volume, mining 32.4 million carats in 2021 with sales topping $4 billion.
The diamond miner is listed under Directive 3 under E.O. 14024 from OFAC, which prohibits 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.
In explaining its decision to sanction Alrosa, the U.S. Treasury said the company is responsible for 90 percent of Russia’s diamond mining capacity, which accounts for 28 percent globally.
The Russian government also holds a 33 percent stake in the company.
The sanctions are not an outright freeze on Alrosa’s assets, nor a complete ban on doing business with the company, the Jewelers Vigilance Committee explained.
They also do not apply to goods acquired from Alrosa or Alrosa USA before Feb. 24, 2022, though JVC recommends businesses hold on to records showing the date Russian-origin goods were acquired and pass along this information to customers if they ask.
What the sanctions do mean for the jewelry industry is that any open memo agreements with terms longer than 14 days should be amended to shorten the terms and/or closed, JVC said.
JVC also advises any U.S. business currently doing business with Alrosa or Alrosa USA should “evaluate the status of any transactions and work to ensure that their transactions do not violate the sanctions.”
The Treasury also launched new actions against influential Russians in President Vladimir Putin’s inner circle or in positions of power within Russia.
Among them is Alrosa CEO Sergey Ivanov Jr., added to the OFAC Specially-Designated Nationals list because he is the son of Sergey Ivanov Sr., a high-ranking Kremlin official who has been on OFAC’s Specially Designated Nationals list since 2014, and because he is a board member of Gazprombank, Russia’s third-largest financial institution and another sanctioned entity.
Related stories will be right here …
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) released an extended list of sanctions on Thursday, building on those imposed earlier this week to target the Russian financial system, including all its largest financial institutions and the ability of state-owned and private entities to make money.
Named on the list is Alrosa, the world’s biggest diamond producer by volume, mining 32.4 million carats in 2021 with sales topping $4 billion.
The diamond miner is listed under Directive 3 under E.O. 14024 from OFAC, which prohibits 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.
In explaining its decision to sanction Alrosa, the U.S. Treasury said the company is responsible for 90 percent of Russia’s diamond mining capacity, which accounts for 28 percent globally.
The Russian government also holds a 33 percent stake in the company.
The sanctions are not an outright freeze on Alrosa’s assets, nor a complete ban on doing business with the company, the Jewelers Vigilance Committee explained.
They also do not apply to goods acquired from Alrosa or Alrosa USA before Feb. 24, 2022, though JVC recommends businesses hold on to records showing the date Russian-origin goods were acquired and pass along this information to customers if they ask.
What the sanctions do mean for the jewelry industry is that any open memo agreements with terms longer than 14 days should be amended to shorten the terms and/or closed, JVC said.
JVC also advises any U.S. business currently doing business with Alrosa or Alrosa USA should “evaluate the status of any transactions and work to ensure that their transactions do not violate the sanctions.”
The Treasury also launched new actions against influential Russians in President Vladimir Putin’s inner circle or in positions of power within Russia.
Among them is Alrosa CEO Sergey Ivanov Jr., added to the OFAC Specially-Designated Nationals list because he is the son of Sergey Ivanov Sr., a high-ranking Kremlin official who has been on OFAC’s Specially Designated Nationals list since 2014, and because he is a board member of Gazprombank, Russia’s third-largest financial institution and another sanctioned entity.
While the sanctions on Ivanov don’t necessarily prohibit transactions with Alrosa, JVC Deputy General Counsel Sara Yood said non-blocked entities controlled or led by blocked persons are at risk for further sanctions, as per OFAC.
She added that U.S. businesses considering transacting with companies controlled or led by sanctioned individuals should be sure they’re not making any missteps, such as inadvertently signing a contract with the blocked person.
As of press time, Alrosa had yet to issue a statement on the sanctions.
Thursday’s sanctions build on those levied earlier this week, when OFAC announced sanctions on two Russian banks, the Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (VEB) and Promsvyazbank Public Joint Stock Company (PSB), as well as 42 of their subsidiaries.
OFAC also levied sanctions on five high-ranking officials in President Vladimir Putin’s government.
“Our actions, taken in coordination with partners and allies, will degrade Russia’s ability to project power and threaten the peace and stability of Europe,” Secretary of the Treasury Janet L. Yellen said when Thursday’s sanctions were announced.
“We are united in our efforts to hold Russia accountable for its further invasion of Ukraine while mitigating impacts to Americans and our partners. If necessary, we are prepared to impose further costs on Russia in response to its egregious actions.”
JVC will address the Russian sanctions at its first compliance briefing of 2022, scheduled for Friday from 11 a.m. to noon Eastern. (It is for JVC members only.)
Jewelers of America said: “We are concerned about the evolving crisis in Ukraine and we are evaluating the real-world impact of sanctions. We will be issuing guidance to members in the coming days.”
In light of the sanctions released earlier in the week, both JVC and JA are urging U.S. jewelry businesses to determine if any of their suppliers or customers are using bank accounts connected to the sanctioned financial entities and, if so, to stop doing business with those accounts.
The full list of entities and individuals sanctioned Thursday can be found here and those sanctioned earlier in the week can be found here.
OFAC’s updated Specially Designated Nationals list is also available to search.
Anyone with questions or a need to obtain authorization to wind down transactions under a general license should contact the OFAC hotline at 1-800-540-6322.
Editors' Picks
Sponsored by
More on Policies & Issues
The Latest
FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday QuarterThe company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ NecklaceThe necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer AwardJameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth LocationThe 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.
Weekly QuizJan 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
WatchesJan 16, 2025
Timex Launches Collection of National Park WatchesThe watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for RegistrationThe jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel AuctionAssociate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround StrategyThe closures are part of the retailer’s plan to close 150 locations over a three-year period.
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for SubmissionsThe awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025The grading lab said the search for her successor is underway.
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and IndustryIn this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni DiesA pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.
FinancialsJan 14, 2025
Signet Jewelers Lowers Q4 Guidance After Holiday Sales Fall ShortThe peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand OfficerSchneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking GemfieldsGemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart RingWith versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical MetalsmithsThe executive brings more than two decades of industry experience to the role.
IndependentsJan 13, 2025
The Seven Pops Up in Palm BeachThe New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.
TrendsJan 10, 2025
Piece of the Week: Elsa Jin’s ‘Mozi’ BroochAdrien Brody received his first Golden Globe while wearing the “Mozi” brooch, which depicts a spill of traditional Chinese calligraphy ink.
SourcingJan 10, 2025
De Beers, GJEPC Partner to Promote Natural DiamondsThe pair will work together to support independent retailers in India with marketing assets, training materials, and other tools.
CrimeJan 09, 2025
US Customs Seizes Counterfeit Tiffany & Co. JewelsOfficers in Champlain, New York valued the jewels, if genuine, at nearly $30,000.
CollectionsJan 09, 2025
Karma El Khalil’s New Collection is an Ode to the MoonThe “Moonlight Rhapsody” collection is overflowing with gemstones, from raw opal to morganite and spessartite.
Events & AwardsJan 09, 2025
Here Is the 2025 AGTA GemFair Tucson Educational LineupThe seminar series covers topics from market trends and colored stone terminology to working with museums and growing an Instagram profile.
