The United States and European Union are continuing to discuss strategies to disrupt the flow revenues to Russia from Western nations. To this end, it has been reported that the EU Chief Trade Officer and U.S. Ambassador from the Office of Sanctions Coordination recently met with leading diamond retailers, manufacturers, laboratories and trade associations from the US and EU countries to identify the most effective methods to disrupt the flow of funds to Russia’s diamond industry.
Current regulations allow diamonds mine in Russia to be sold in the United States if they are cut and polished in another country. Forthcoming sanctions are expected to change this rule and preclude the use of diamonds mined in Russia regardless of where they are finished.
We anticipate that the U.S. Government may require companies importing diamonds or goods containing diamonds to disclose the country in which the diamonds were mined; diamonds mined in Russia would presumably be denied entry into the United States.
Please feel free to contact Alan R. Klestadt ([email protected]), or any of the other attorneys in our office, if you have any questions or require any additional information.
