Editor’s Note
The US has extended sanctions on Russian diamond giant Alrosa, with a wind-down deadline set for early May. The move could impact nearly a third of the global rough diamond supply.
The US Treasury Department has extended sanctions against Russian diamond miner Alrosa PJSC, potentially cutting off about 30% of the world’s rough diamond supply.
Under a license from the Office of Foreign Assets Control, Alrosa’s customers and other counterparties must cease all transactions with the state-controlled Russian mining company by May 7. Alrosa declined to comment.
Alrosa produces roughly the same volume of gems as De Beers, the iconic diamond company that held a monopoly until the early 2000s. As the world’s largest diamond producer, Russia competes with Botswana, while the US is the industry’s most important market, accounting for about half of total sales.
The US restrictions add pressure on Alrosa, as the risk of cross-sanctions could deter buyers in other regions. Following Russia’s invasion of Ukraine, the European Union and the UK had previously sanctioned the mining company. Alrosa, which employs about 32,000 people, has its main markets in the US and Asia, including India.
Last month, US jewelers Tiffany & Co. and Signet Jewelers Ltd. said they would stop buying newly mined diamonds from Russia as pressure mounted on companies to remove the country’s products from their supply chains.