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

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Weekly QuizMar 27, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen
MajorsMar 26, 2025
QVC Group Appoints New President

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Jewelers of America’s new logo
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

Sothebys Watchcheck
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair Services

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.

Swarovski lab-grown diamond Galaxy earrings
FinancialsMar 21, 2025
Swarovski Says Its Lab-Grown Diamond Sales Doubled in 2024

The company also noted record sales in the United States and a strong performance in its jewelry category.

Branko Gems
SourcingMar 21, 2025
BrankoGems To Hold Conference in Montana

The event, set for June 13-15, will feature educational presentations and guided visits to the state’s sapphire mines.

Til Death Ring by Marrow Fine
TrendsMar 21, 2025
Piece of the Week: Marrow Fine’s ‘Til Death’ Ring

After the black enamel band became a best-seller for the brand, it has now launched an enamel ring personalization program.

Korman Fine Jewelry Austin store
IndependentsMar 20, 2025
Korman Fine Jewelry’s New Store Is Double the Size

The Austin, Texas, jeweler’s new 11,000-square-foot store is set to open this summer.

JCK Rocks 2025
Events & AwardsMar 20, 2025
JCK Rocks to Feature Snoop Dogg, Jason Derulo

The rapper and singer-songwriter will perform at Tao Beach on June 8.

Conversations with Chris Ploof YouTube Video Series
TechnologyMar 20, 2025
Chris Ploof, Severine Ferrari Launch YouTube Video Series

“Conversations with Chris Ploof” covers tips for men buying wedding bands, behind-the-scenes footage of Ploof in his studio, and more.

Limelight Lab Grown Diamond store in India
Lab-GrownMar 20, 2025
Beyond Jewelry: Possibilities in the Lab-Grown Diamond Sector

As lab-grown diamond brands pop up across India, academics are researching how to grow demand outside of the jewelry industry.

Lab-grown diamond engagement ring
FinancialsMar 19, 2025
Signet Jewelers to Close Stores, Cut Staff Amid Declining Sales

The moves are part of the retailer’s new turnaround plan, “Grow Brand Love,” which also includes emphasizing brand loyalty over store banners.

×

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