Editor’s Note
This article details new U.S. sanctions targeting Russian diamond miner Alrosa PJSC, a move that could significantly impact the global rough diamond supply.
The US Treasury Department has extended sanctions to Russian diamond miner Alrosa PJSC, potentially cutting off around 30% of the world’s supply of rough stones.
According to a license from the US Office of Foreign Assets Control, Alrosa’s clients and other counterparties must halt all dealings with the state-controlled Russian miner by May 7. Alrosa declined to comment.
Alrosa produces roughly the same quantity of gems as De Beers, the iconic diamond company that held a monopoly until the early part of this century. Russia competes with Botswana as the world’s largest diamond producer, while the US is the industry’s most important market, accounting for about half of all sales.
The US restrictions increase pressure on Alrosa, as the risk of cross-sanctions threatens to deter buyers from other regions. The European Union and the United Kingdom previously imposed sanctions on the miner following Russia’s invasion of Ukraine. Alrosa’s main markets, employing about 32,000 people, are the US and Asia, including India.
Last month, US jewelers Tiffany & Co. and Signet Jewelers Ltd. said they would stop buying newly mined Russian diamonds as pressure mounts on companies to remove the country’s products from their supply chains.