The US Office of Foreign Assets Control (OFAC) has taken action to freeze payments amounting to $26 million, which were intended for the purchase of rough diamonds from Russia by Indian businesses, as reported by sources cited in IDEX Online.
In recent times, OFAC has reportedly issued directives to banks, compelling them to halt the transfer of funds, particularly those originating from UAE subsidiaries of Indian enterprises. Despite no official sanctions imposed by India or the UAE on the procurement of Russian rough diamonds, the United States has implemented such restrictions. However, it is notable that this embargo does not extend to diamonds that have been cut and polished outside Russia.
Data disclosed by the Gem and Jewellery Export Promotion Council (GJEPC) for the months spanning April to June reveals that India’s monthly average rough diamond imports, from various sources, amount to $1.3 billion.
