Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain Policies & IssuesJul 01, 2022
U.S. Expands Sanctions to Russian Gold
The U.K, Canada, and Japan have also banned the import of gold originating from Russia.
The U.S. Treasury announced Tuesday that gold of Russian origin cannot be imported into the United States, effective immediately.
Washington—The U.S. Department of the Treasury has expanded its sanctions on Russian imports, this time including gold of Russian origin.
The Treasury announced Tuesday, June 28, that gold of Russian Federation origin cannot be imported into the United States, effective immediately, unless otherwise licensed or authorized by the Office of Foreign Assets Control (OFAC).
Excluded from this latest round of sanctions is gold of Russian origin shipped out of Russia before the sanctions were announced.
“Today’s actions .... strike at the heart of Russia’s ability to develop and deploy weapons and technology used for Vladimir Putin’s brutal war of aggression against Ukraine,” said the Treasury.
Even prior to the new sanctions, certain gold-related transactions involving Russia were sanctionable under an executive order as well as other Russia-related sanctions, noted the Treasury.
In updated guidance sent to members Wednesday, the Jewelers Vigilance Committee made the same point about pre-existing sanctions.
JVC also noted a change to OFAC’s FAQ section in regard to Russian gold. The update states that Russian gold that is “substantially transformed” in another country is not subject to sanctions, the same exception applied to Russian diamonds when they were sanctioned earlier this year.
“An example of substantial transformation of gold would be taking 24-karat gold bullion and making it into 18-karat wire,” explained Sara Yood, deputy general counsel at JVC.
“An example of an act that would likely not be viewed as substantial transformation would be putting findings onto a chain to make it a necklace,” she added.
JVC is advising businesses to proceed with caution.
“Businesses regularly importing gold from countries not listed above [meaning Russia] should be sure to talk to their suppliers about this new restriction and ensure they are not unknowingly importing Russian gold into the United States.”
Companies should also search the London Bullion Market Association’s “Good Delivery List,” said JVC, a list of vetted bullion suppliers that follow the association’s responsible sourcing guidelines.
Related stories will be right here …
The Treasury announced Tuesday, June 28, that gold of Russian Federation origin cannot be imported into the United States, effective immediately, unless otherwise licensed or authorized by the Office of Foreign Assets Control (OFAC).
Excluded from this latest round of sanctions is gold of Russian origin shipped out of Russia before the sanctions were announced.
“Today’s actions .... strike at the heart of Russia’s ability to develop and deploy weapons and technology used for Vladimir Putin’s brutal war of aggression against Ukraine,” said the Treasury.
Even prior to the new sanctions, certain gold-related transactions involving Russia were sanctionable under an executive order as well as other Russia-related sanctions, noted the Treasury.
In updated guidance sent to members Wednesday, the Jewelers Vigilance Committee made the same point about pre-existing sanctions.
JVC also noted a change to OFAC’s FAQ section in regard to Russian gold. The update states that Russian gold that is “substantially transformed” in another country is not subject to sanctions, the same exception applied to Russian diamonds when they were sanctioned earlier this year.
“An example of substantial transformation of gold would be taking 24-karat gold bullion and making it into 18-karat wire,” explained Sara Yood, deputy general counsel at JVC.
“An example of an act that would likely not be viewed as substantial transformation would be putting findings onto a chain to make it a necklace,” she added.
JVC is advising businesses to proceed with caution.
“Businesses regularly importing gold from countries not listed above [meaning Russia] should be sure to talk to their suppliers about this new restriction and ensure they are not unknowingly importing Russian gold into the United States.”
Companies should also search the London Bullion Market Association’s “Good Delivery List,” said JVC, a list of vetted bullion suppliers that follow the association’s responsible sourcing guidelines.
Jewelers of America also has resources and guidance regarding Russian goods available to members on its website.
“From very early in the crisis, Jewelers of America has been adamant in advising JA members to cease the purchase of goods used in jewelry that have emanated from Russia and benefit the Russian government,” JA President and CEO David Bonaparte told National Jeweler.
“The latest ban reinforces the need for jewelers to place heightened scrutiny into where diamonds, precious metals, and precious gemstones originate.”
The latest sanctions on Russia follow the meeting of world leaders at the recent G-7 summit in Munich, where the U.S., Canada, France, Germany, Italy, Japan, the United Kingdom, and the European Union met to discuss, among other topics, the war in Ukraine.
Several leaders agreed on an import ban on new gold from Russia in an attempt to hinder the flow of revenue funding the war in Ukraine.
The U.S., Canada and Japan are joining the U.S. in the ban.
The export of gold garners tens of billions of dollars for Russia, President Joe Biden said in a tweet.
The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine.
— President Biden (@POTUS) June 26, 2022
Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.
Secretary of the Treasury Janet Yellen said the ban “reaffirm[s] our commitment to working alongside our partners and allies to impose additional severe sanctions in response to Russia’s war against Ukraine.”
The sanctions also apply to an additional 70 Russian entities and 29 Russian individuals said to be critical to the country’s defense, industrial, technology, and manufacturing sectors.
“Broad multilateral commitments and actions by G7 members this week further cut off the Russian Federation’s access to technology that is critical to their military,” said Yellen.
“Targeting Russia’s defense industry will degrade Putin’s capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures.”
This is the latest round of sanctions against Russia to affect the jewelry industry.
The Treasury Department first sanctioned Russian diamond miner Alrosa and its CEO in February.
In March, President Biden banned the import of Russian diamonds to the U.S. via executive order.
In April, the U.S. government put Alrosa on the Specially Designated Nationals list, effectively preventing U.S. companies from doing any business with Alrosa.
Alrosa accounts for 90 percent of Russia’s diamond mining capacity, according to the Treasury, and the Russian government holds a 33 percent stake in the company.
It mined 32.4 million carats in 2021, making it the largest producer by volume and accounting for nearly 30 percent of global supply, with sales topping $4 billion.
The sanctions also apply to an additional 70 Russian entities and 29 Russian individuals said to be critical to the country’s defense, industrial, technology, and manufacturing sectors.
“Broad multilateral commitments and actions by G7 members this week further cut off the Russian Federation’s access to technology that is critical to their military,” said Yellen.
“Targeting Russia’s defense industry will degrade Putin’s capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures.”
This is the latest round of sanctions against Russia to affect the jewelry industry.
The Treasury Department first sanctioned Russian diamond miner Alrosa and its CEO in February.
In March, President Biden banned the import of Russian diamonds to the U.S. via executive order.
In April, the U.S. government put Alrosa on the Specially Designated Nationals list, effectively preventing U.S. companies from doing any business with Alrosa.
Alrosa accounts for 90 percent of Russia’s diamond mining capacity, according to the Treasury, and the Russian government holds a 33 percent stake in the company.
It mined 32.4 million carats in 2021, making it the largest producer by volume and accounting for nearly 30 percent of global supply, with sales topping $4 billion.
More on Policies & Issues
The Latest
TrendsDec 08, 2023
Pantone’s Color of the Year Is Warm and FuzzyThe peachy hue also marks the program’s 25th anniversary.
AuctionsDec 08, 2023
Sotheby’s Sold All Mary Tyler Moore’s JewelryThe 21 pieces up for auction, including Tiffany & Co. jewels and a Cartier watch, garnered more than $430,000 across two sales.
CollectionsDec 08, 2023
Piece of the Week: A ‘Strong & Precious’ Brooch Centered on a sunny heliodor, the “Links” pin was designed by Ukrainian jewelry artist Inesa Kovalova.
Brought to you by
The Most Important “C” in Diamonds: Confidence!Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.
MajorsDec 07, 2023
Lashbrook Sues Manly Bands for Allegedly Copying Designs The wedding band company is also accusing its former customer of removing watermarks from Lashbrook images for its own use.
Weekly QuizDec 07, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
MajorsDec 07, 2023
24 Karat Club of New York Welcomes New MembersThe organization has elected 12 new additions.
ColumnistsDec 06, 2023
On Data: How Are Independents Doing So Far This Holiday Season? Sherry Smith breaks down the numbers on jewelry sales in November and reveals the category that “emerged as a standout.”
Brought to you by
If It’s Custom, Make It PlatinumWith holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.
AuctionsDec 06, 2023
A Yellow Diamond, Hollywood Jewels Stand Out at Sotheby’s Additional lots will be offered in the Fine Jewels online sale through Dec. 7.
GradingDec 06, 2023
GIA Debuts Revamped Graduate Jeweler ProgramBy mixing creative and practical skills, the new course hopes to fill the industry’s bench jeweler gap.
AuctionsDec 06, 2023
Verdura Cuff, Burmese Sapphire Shine at Bonhams Several other colored gemstones joined the pieces in the top 10 list.
FinancialsDec 05, 2023
Signet Jewelers’ Q3 Sales Down 12% The retailer is still expecting a strong holiday season with improving demand for natural diamonds.
CrimeDec 05, 2023
Police Continue to Investigate Murder of Colorado Jeweler Peter Damian Arguello, the owner of Peter Damian Fine Jewelry & Antiques, was shot and killed in an apparent robbery last week.
MajorsDec 05, 2023
Tanishq Continues U.S. Expansion With 2 New StoresThe Indian jewelry giant has opened locations in Houston and Frisco, Texas.
SourcingDec 05, 2023
Grandview Klein Awards Two Scholarships in NamibiaEach student was provided with the full amount of tuition for the Namibia University of Science & Technology.
SourcingDec 04, 2023
David Prager To Leave De Beers in 2024Ryan Perry, who has been with De Beers since 2002, also will be leaving the company next year.
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury WatchesThe watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJCThe industry veteran will step down from both roles in April 2024.
TrendsDec 04, 2023
Amanda’s Style File: Decadent DecemberTanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany ExecThe lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales DipThe company said it is facing a “challenging retail environment” but is prepared for the holiday season.
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond NecklaceIt’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong KongThe 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COOChris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow DiamondThe stone headlining the upcoming sale could fetch up to $5 million.
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ ProgramThe retail offering lets customers track their diamond’s journey.
SourcingNov 29, 2023
Largest New Diamond Mine of the Decade Coming Online in Angola The Luele mine is expected to eventually make the country the world’s third-largest diamond producer.
