Policies & Issues

When It Comes to Russian Diamonds, Industry Is Watching, Waiting

Policies & IssuesMar 02, 2022

When It Comes to Russian Diamonds, Industry Is Watching, Waiting

The longer Russia’s assault on Ukraine continues, the more complicated the situation becomes for the jewelry industry.

2022_Alrosa Mir mine.jpg
An aerial view of Mir, an open-pit diamond mine in the Sakha Republic operated by Alrosa. Alrosa was one of the companies sanctioned by the U.S. government following Russia’s invasion of Ukraine, a step that could have huge implications for the jewelry industry. (Photo courtesy of Alrosa)
New York—In the week since the United States first levied sanctions on one of the industry’s largest diamond suppliers, one thing has become clear—the situation is complicated, and no one knows quite where the industry goes from here.
 
Russian diamond miner Alrosa fell under the second round of U.S. sanctions announced last week after Russia launched a deadly, unprovoked assault on Ukraine, creating a humanitarian crisis and drawing criticism from nearly every corner of the globe.
 
As previously reported, the sanctions are not a total ban on doing business with Alrosa, but the situation is murky. 

Russia’s primary banks are sanctioned, which could complicate any financial transactions with Alrosa, as is the company’s CEO, Sergey Ivanov Jr. 
 
Considering the sanctions on Alrosa, the banks and Ivanov, the Jewelers Vigilance Committee recommends companies check the lists of sanctioned companies and individuals, which are available here and here, to ensure they are not doing business with any of them.
 
Jewelers of America, meanwhile, issued a statement late Monday advising its members to stop buying or selling diamonds, precious metals and gemstones of Russian or Belorussian origin.

It is also a good time for companies to review their anti-money laundering programs, JVC said.
 
In an interview Tuesday, diamond industry analyst Paul Zimnisky noted the midstream section of the market—cutters and polishers based mainly in India—will be first to feel the effects of the sanctions, as the country’s Gem & Jewellery Export Promotion Council noted in a statement to Rapaport.
 
Rough diamonds being cut and polished today won’t end up in U.S. retailers’ hands for 3-5 months, and no one can say with any certainty what the situation will be then.
 
But, what about the diamonds that are already in the United States? 
 
According to JVC, the restrictions placed on Alrosa do not apply to goods obtained from Alrosa or Alrosa USA before Feb. 24, the day the sanctions took effect. And the diamonds are already paid for, meaning they aren’t currently adding to the coffers of the Russian government as it advances in Ukraine.  
 
Zimnisky also pointed out that while the Russian government does own 33 percent of Alrosa, another 33 percent is owned by the government of Sakha (Yakutia), the remote region where Alrosa has most of its mines and where local populations rely on diamonds for their livelihood. 
 
But, from vodka to caviar, there is a groundswell of disdain for Russian products, an irony for Alrosa, which, like the rest of the diamond trade, has spent an extraordinary amount of time and money making sure its stones are traceable from mine to market and can reliably be sold as Russian diamonds.
 
“Sanctions aside, I think the biggest impact for the industry could be if the Western consumer becomes reluctant to buy Russian diamonds in protest. For many jewelers, one in three or four of the diamonds they hold in inventory are of Russian origin,” Zimnisky said. 
 
“So, this is a big deal for this industry, for sure.”

 Related stories will be right here … 
 
That fact is not lost on jewelry’s major players, who, so far, have said little to nothing publicly about Russian diamonds.
 
Signet Jewelers, Tiffany & Co., and Blue Nile did not respond to National Jeweler’s request for comment on how the sanctions will impact their business or their position on Russian diamonds. 
 
As of press time, nothing had been posted to their respective websites or social media accounts addressing the issue.
 
In fact, the only public reference any of these jewelers have made to the ongoing war and humanitarian crisis in Ukraine came from Signet's Banter by Piercing Pagoda, which posted to Instagram about backing Together Rising in its support of Ukraine, a post that was later removed.

The two retailers that did respond to National Jeweler were Ben Bridge and Helzberg Diamonds, both Berkshire Hathaway-owned companies.
 
Helzberg said, “Alrosa is not a Helzberg Diamonds business partner,” while Ben Bridge CEO Lisa Bridge said via email they “have not and do not” source directly from Russia. 
 
She added: “At Ben Bridge, we care deeply about protecting both people and the environment in every stage of the supply chain. We have always adhered to the highest ethical and quality standards in the industry to ensure that all of our diamonds and gemstones are mined and sourced responsibly … Today, we stand with the people of Ukraine and keep them in our hearts as they fight for their freedom.” 
 
The sole retailer to speak out publicly so far has been Brilliant Earth, which centers its brand on “responsible sourcing.” 
 
The retailer, which recently went public, posted a tweet over the weekend announcing it had removed all diamonds mined in Russia from its website, though it declined to comment when asked what percentage of its stock consists of Russian goods, citing a quiet period.
 
 
 
“At Brilliant Earth, we remain committed to transparency and responsibility, and offering products that meet our high standards,” the company wrote on Twitter. “We hope for a peaceful and swift resolution in Ukraine, and, like the rest of the world, are watching the situation there closely.”
 
Alrosa mined 32.4 million carats of diamonds in 2021, making it the world’s largest diamond producer alongside De Beers (32.3 million carats) and accounting for nearly 30 percent of global supply. 
 
Zimnisky said the potential impact on the diamond industry—which is already grappling with a shortage of rough and rising prices—from a supply standpoint is significant, akin to a disruption in the supply of uranium (which is enriched and used to power nuclear power plants) from Kazakhstan or cobalt (used in batteries for electric cars) from Congo, both of which account for one-third of global supply.
 
Russia also is a supplier of palladium and gold, with JVC noting Tuesday it is working to determine if there are repercussions for gold coming through Russia.
 
The longer the invasion of Ukraine and resulting sanctions on Russia continues, the greater the implications for the industry. 
 
“There is hope this is going to be resolved in the near term and, if so, the implications wouldn’t be as great. That is the hope,” Zimnisky said.
 
But, he concluded, “The longer it goes on, the more complex it gets.”
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

“Storied Diamond Desert Sands of Eternity” engagement ring and wedding band
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

Emily P. Wheeler Ombré Collection Campaign
CollectionsOct 08, 2025
Emily P. Wheeler Shifts Into Neutral for Latest ‘Ombré’ Collection

The champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.

MRK x MFA Tsuba Charm Necklace Collection Campaign
CollectionsOct 08, 2025
Tsuba Designs Inspire Monica Rich Kosann’s New Charms

Kosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.

ja_fall_2024_by_headshot_stories_6824.jpg
Brought to you by
JA New York Fall Is Right Around the Corner

The upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.

Stock image of a gavel and law books
CrimeOct 07, 2025
Men Who Posed as Utility Workers Found Guilty in Jeweler’s Murder

Carlos Jose Hernandez and Joshua Zuazo face life in prison for the October 2024 murder of 72-year-old Detroit-area jeweler Hussein Murray.

Weekly QuizOct 02, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Zoë Kravitz Wearing Jessica McCormack Tempest Sapphire Pendant and Tempest Diamond Necklace
CollectionsOct 07, 2025
Jessica McCormack Looks to Sea Spirits for ‘Tempest’ Collection

The brand’s first high jewelry collection, “Tempest” plays with movement while calling to mind the folklore of the sea.

Lightning Ridge Rural Fire Brigade
SourcingOct 07, 2025
Columbia Gem House Announces ‘Opals for Outback Heroes’ Fundraiser

Proceeds from its jewelry raffle will go to a volunteer-run fire and rescue group in the Lightning Ridge area of New South Wales, Australia.

gia-edu main image.png
Brought to you by
A Brilliant Future Is Here

Online education from GIA experts.

Stuller 2025 S.E.R.V.E. Star Awards winners
MajorsOct 07, 2025
Stuller Names Its S.E.R.V.E Stars for 2025

Stuller said the recipients embody the company’s core values, which include community participation and personal and professional growth.

All four models of Citizen’s new Rainell watch
WatchesOct 06, 2025
This Fall, Citizen’s Forecast Calls for Rain

Citizen’s new “Rainell” women’s watch has a raindrop-shaped case and is available with a silver-, gold-, purple-, or green-colored dial.

Mercedes Gleitze Rolex Oyster 1926
AuctionsOct 06, 2025
The ‘Rolex That Made Rolex’ Heads to Auction at Sotheby’s

The “Mercedes Gleitze Rolex Oyster,” named for the British endurance swimmer who made it famous, will go up for sale next month.

Amit Pratihari GIA India
GradingOct 06, 2025
GIA India Names Former De Beers Exec as New Managing Director

Amit Pratihari was previously the managing director of De Beers India and Forevermark India.

DCWC 2025 Board of Directors
SourcingOct 06, 2025
SoCal 24 Karat Club Integrates Into Diamond Club West Coast

Members of the Jewelers 24 Karat Club of Southern California will gain access to expanded services, resources, and connections, DCWC said.

Selena Gomez and Benny Blanco Wedding, Jacob & Co. Watch
TrendsOct 03, 2025
Selena Gomez, Benny Blanco Tie the Knot Wearing Diamonds, White Metals

Gomez’s jewelry included Tiffany & Co. drop-style earrings while Blanco stacked diamonds from Jacob & Co. on his wrist.

HRD Antwerp CEO Paul De Wachter
GradingOct 03, 2025
Grading Lab HRD Antwerp Names New CEO

Diamond industry banking veteran Paul De Wachter will take on the role in January 2026.

Taylor Swift Kallati sapphire ring
TrendsOct 03, 2025
Piece of the Week: Kallati’s Pink Sapphire Ring

Taylor Swift flaunts an Elizabeth Taylor-esque gemstone in promo for her new album, “The Life of a Showgirl.”

Boucheron Quatre Sand Collection
CollectionsOct 02, 2025
Boucheron Debuts Cuffs Crafted With 3D-Printed Sand

Its “Quantre Sand” capsule was made using a 3D sand printing technique borrowed from the automotive and aeronautics industries.

Stock image of crime scene tape
CrimeOct 02, 2025
$1M in Jewelry Stolen in Northern California Smash and Grab

Four individuals have been charged in the “takeover-style” robbery of Heller Jewelers last month, and additional charges are expected.

Neil Lane and Boucheron bow tie brooch
MajorsOct 02, 2025
Neil Lane Jewelry Exhibition Coming to Toledo Museum of Art

“Radiance and Reverie” will showcase more than 150 jewels from Lane’s personal collection by Tiffany & Co., Cartier, and more.

Just Jules opal necklace
TrendsOct 02, 2025
Amanda’s Style File: October’s Colorful Show

The month’s birthstones, tourmaline and opal, complement the palette of autumn.

Peter Smith National Jeweler columnist
ColumnistsOct 01, 2025
Peter Smith: Why Vendor Success Starts With Self-Reflection

Smith shares the importance of looking at your company with openness and honesty to identify opportunities you may be missing.

Plah Black Swan Earrings
EditorsOct 01, 2025
Playing Favorites: The Best Jewelry From Vicenzaoro

Associate Editor Natalie Francisco visited Italy to spot jewelry trends at the September Vicenzaoro show and share her top finds.

People shopping in a mall
SurveysOct 01, 2025
Consumer Confidence Hits 5-Month Low in September

Respondents were concerned about job availability and rising prices.

Gemfields rough emeralds
SourcingOct 01, 2025
Gemfields’ H1 Revenue Falls 47%

Its latest interim financials revealed a challenging first half due in part to production troubles at its mines.

Pandora executives Alexander Lacik and Berta de Pablos-Barbier
MajorsSep 30, 2025
Pandora CEO to Retire in 2026, Hand Reins to CMO

Alexander Lacik has led Pandora since 2019. Berta de Pablos-Barbier will succeed him, the first woman to head the company.

Gavel near stacks of books
CrimeSep 30, 2025
2 Suspects Charged in $300K Sleight-of-Hand Jewelry Store Scam

Two men allegedly used counterfeit bills to purchase luxury watches and jewelry from a North Carolina jeweler.

Billie Eilish and Finneas O’Connell John Hardy Lovestruck Collection
CollectionsSep 30, 2025
Billie Eilish, Finneas Partner with John Hardy

The “Lovestruck” collection, designed with the Academy and Grammy award-winning siblings, is the brand’s first lab-grown diamond offering.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy