EditorsFeb 15, 2023
4 Predictions for the Diamond Market in 2023 and BeyondPolicies & IssuesFeb 28, 2023
Tighter Sanctions on Russian Diamonds Are Likely Coming, JVC Warns
New regulations could block the pathway that allows diamonds cut and polished outside of Russia to enter the United States.
On Feb. 24, the one-year anniversary of Russia’s invasion of Ukraine, leaders of the G7 nations announced their ongoing support for Ukraine and their intentions to make it more difficult for Russia to continue to fund the war. Limiting Russia’s ability to profit from its diamonds is one of the areas G7 leaders likely will address.
New York—Leaders of the Group of Seven recently announced they will be working together to tighten restrictions on diamonds coming out of Russia, both rough and polished.
The Group of Seven, or G7, is an informal, intergovernmental group comprised of seven industrialized democracies: the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom.
In a statement issued Friday—the one-year anniversary of Russia’s invasion of Ukraine—G7 leaders called on Russia to put a stop to the war in Ukraine, which has killed thousands of Ukrainians, forced millions more to flee, and led to the destructions of homes, hospitals, schools, critical infrastructure, and historic cities across the country.
“We condemn Russia’s illegal, unjustifiable, and unprovoked war, disregard for the Charter of the United Nations and indifference to the impacts that its war is having on people worldwide,” they said.
“We salute the heroism of the Ukrainian people in their brave resistance. We commit to intensifying our diplomatic, financial, and military support for Ukraine, to increasing the costs to Russia and those supporting its war effort, and to continuing to counter the negative impacts of the war on the rest of the world, particularly on the most vulnerable people.”
In the statement, diamonds are mentioned specifically as a product Russia is using to help fund the war, and one of the revenue streams G7 nations are looking to restrict.
“Given the significant revenues that Russia extracts from the export of diamonds, we will work collectively on further measures on Russian diamonds, including rough and polished ones, working closely to engage key partners,” they said.
Related stories will be right here …
The Group of Seven, or G7, is an informal, intergovernmental group comprised of seven industrialized democracies: the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom.
In a statement issued Friday—the one-year anniversary of Russia’s invasion of Ukraine—G7 leaders called on Russia to put a stop to the war in Ukraine, which has killed thousands of Ukrainians, forced millions more to flee, and led to the destructions of homes, hospitals, schools, critical infrastructure, and historic cities across the country.
“We condemn Russia’s illegal, unjustifiable, and unprovoked war, disregard for the Charter of the United Nations and indifference to the impacts that its war is having on people worldwide,” they said.
“We salute the heroism of the Ukrainian people in their brave resistance. We commit to intensifying our diplomatic, financial, and military support for Ukraine, to increasing the costs to Russia and those supporting its war effort, and to continuing to counter the negative impacts of the war on the rest of the world, particularly on the most vulnerable people.”
In the statement, diamonds are mentioned specifically as a product Russia is using to help fund the war, and one of the revenue streams G7 nations are looking to restrict.
“Given the significant revenues that Russia extracts from the export of diamonds, we will work collectively on further measures on Russian diamonds, including rough and polished ones, working closely to engage key partners,” they said.
In a member alert circulated Monday, the Jewelers Vigilance Committee said the forthcoming sanctions are likely to address the issue of “substantial transformation,” which allows diamonds from Russia to enter the U.S. if they are cut and polished in another country—which many of them are—despite President Joe Biden’s March 2022 executive order banning their import.
The substantial transformation pathway dates to a 1940 Court of Customs and Patent Appeals ruling in United States v. Gibson-Thomsen Co. Inc., a case about toothbrushes and hairbrushes that had their handles/bases made in Japan but their bristles added in the U.S.
According to the ruling, a product undergoes a substantial transformation if via further manufacturing, it becomes a new product with “a new name, character and use.” The product is then considered to originate from the country where the transformative manufacturing took place.
In 2019, U.S. Customs and Border Patrol (CPB) extended the concept of substantial transformation to the cutting and polishing of diamonds.
“This is not going to be an immediate [change] but this is an indication the U.S. government is working on this issue … it is a priority.” — Sara Yood, Jewelers Vigilance Committee
The diamonds in question in that case were mined in Botswana, evaluated in the U.S., sawn and blocked in China, and cut and polished in India. CBP ruled the cutting and polishing was the substantial transformation in the process—the significant step that ultimately changed the character of the rough diamonds—and so the diamonds’ country of origin was India.
JVC Deputy General Counsel Sara Yood said the intent behind the G7 statement is to tighten up the substantial transformation pathway for these goods without damaging substantial transformation, a useful interpretation of the law that’s used across industries, as a concept.
It also will help clear up confusion in the U.S., the world’s largest market for diamonds, where tight sanctions on Russian diamonds have been in place for almost a year.
“The U.S. market has been looking for clarity on this issue for 10 months. On the government level, they’ve also been trying to give us clarity for 10 months,” Yood said.
The process of creating and implementing any new regulations is expected to take a few months.
The European Union is a non-enumerated member of the G7 and one of its member countries, Belgium—home to the diamond trading hub of Antwerp—has been resistant to restricting the flow of Russian diamonds, thereby potentially complicating negotiations.
Yood said in the U.S., there also will be a phase-in period for any new regulations.
“This is not going to be an immediate [change] but this is an indication the U.S. government is working on this issue and the G7 is working on this issue, and that it’s a priority,” she said.
In the meantime, JVC recommends suppliers abroad that are still purchasing diamonds from Alrosa begin segregating those goods so they don’t reach the U.S. market.
It also recommends companies “be prepared” to make customs declarations that their diamonds aren’t from Russia, though it is not immediately clear how U.S. Customs will approach country of origin declarations for diamonds.
In addition, JVC urges U.S. businesses to evaluate their supply chains. They need to know where their products originate and, if they need to adjust sourcing, how it can be done.
Yood said utilizing existing anti-money laundering (AML) and know your customer (KYC) protocol is a great framework to start with, as is referencing the OECD due diligence guidance created for sourcing metals from high risk and conflict-affected areas.
JVC CEO and General Counsel Tiffany Stevens said the organization will work with the U.S. State Department and other government partners to ensure the industry fully understands its responsibilities regarding any new regulations.
“In the meantime, JVC will continue to educate the trade on its role in ensuring that U.S. dollars do not go to fund the ongoing unjustified war in Ukraine,” she said.
Sanction developments, including the latest news from the G7 nations, will be the topic of discussion at the JVC’s upcoming annual luncheon, scheduled for Friday, March 17, at the InterContinental Barclay hotel in New York.
Ambassador James O’Brien will be the keynote speaker at the event.
O’Brien has served as the Biden administration’s head of Office Sanctions Coordination since April 2022 and prior to that, served as the special envoy for hostage affairs under President Barack Obama.
He can speak to any and all developments regarding sanctions on Russian diamonds.
For more information on the luncheon, visit the JVC website.
More on Policies & Issues
The Latest
AuctionsFeb 18, 2026
Joanna Carson’s Jewels Head to AuctionThe estate of the model, philanthropist, and ex-wife of Johnny Carson has signed statement jewels up for sale at John Moran Auctioneers.
PodcastsFeb 18, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.
MajorsFeb 18, 2026
Select Jewelry Inks Agreement to Distribute Lightweight Gold JewelryIt will lead distribution in North America for Graziella Braccialini's new gold pieces, which it said are 50 percent lighter.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
Events & AwardsFeb 18, 2026
DCA to Host Gemstone Selling Education Session at IJO EventThe nonprofit will present a live, two-hour introductory course on building confidence when selling colored gemstones.
Weekly QuizFeb 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the HorseWestern wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.
SourcingFeb 17, 2026
Colored Gemstone Experts Talk Tariffs, Trends in TucsonAlthough the market is robust, tariffs and precious metal prices are impacting the industry, Stuart Robertson and Brecken Branstrator said.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
MajorsFeb 13, 2026
JFC Announces New BeneficiariesThe nonprofit has welcomed four new grantees for 2026.
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are ClosingParent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
Events & AwardsFeb 11, 2026
TJS Announces Roundtable, Launches New AppRegistration is now open for The Jewelry Symposium, set to take place in Detroit from May 16-19.
SourcingFeb 10, 2026
At Meeting in South Africa, Support for Natural Diamonds Picks Up Steam Namibia has formally signed the Luanda Accord, while two key industry organizations pledged to join the Natural Diamond Council.
TrendsFeb 10, 2026
Bad Bunny Wears Football-Shaped ‘Desert Diamond’ for Halftime PerformanceLady Gaga, Cardi B, and Karol G also went with diamond jewelry for Bad Bunny’s Super Bowl halftime show honoring Puerto Rico.
SurveysFeb 10, 2026
Shoppers to Spend Big on Jewelry This Valentine’s Day, Says NRFJewelry is expected to be the No. 1 gift this year in terms of dollars spent.
FinancialsFeb 10, 2026
Kering Plans Transformation as 2025 Sales Sink 13%As star brand Gucci continues to struggle, the luxury titan plans to announce a new roadmap to return to growth.
SourcingFeb 10, 2026
AGTA To Debut ‘Stuller Color of the Year’ Spectrum Awards CategoryThe new category asks entrants for “exceptional” interpretations of the supplier’s 2026 color of the year, which is “Signature Red.”
