Key supply of diamonds caught up in Russia sanctions
CTV
Far-reaching global sanctions against Russia for its invasion of Ukraine are affecting the global supply of diamonds.
U.S. President Joe Biden on Friday issued an executive order prohibiting imports of certain products originating in Russia. They include fish, seafood, luxury goods, alcoholic beverages and non-industrial diamonds.
The ban directly targets Alrosa, which the U.S. government identified as the world's largest diamond mining company, responsible for 90 per cent of Russia's diamond mining capacity and accounting for 28%, or nearly a third, of global diamond output.
In 2021, Alrosa supplied 32.4 million carats of diamonds. Alrosa is partly owned by the Russian government and its shares trade on the Moscow Stock Exchange.
"This is a very big deal and a once-in-a-lifetime situation for the diamond industry," said Tiffany Stevens, CEO and general counsel of the Jewelers Vigilance Committee (JVC), a 105-year-old non-profit that advocates for the U.S. jewelry industry and provides legal education and compliance guidance to its 600 individual members.
