US extends loophole to keep banned Russian diamonds coming

A license for certain gem imports has been extended by the Treasury Department until 2026

The United States will allow the import of certain Russian diamonds until 2026, continuing a notable exception to sanctions on the world’s largest producer of rough gems.

A direct embargo on diamonds from the country, introduced by the G7 and the EU as part of Ukraine conflict-related sanctions, took effect in January 2024 and was followed by restrictions on stones processed through third countries. Washington later eased that measure with a temporary waiver allowing limited imports under certain conditions.

According to a Treasury Department license issued this week, the waiver has been prolonged through September 2026, covering non-industrial diamonds over one carat that were outside Russia from March 2024 and not re-exported since, as well as stones above half a carat that met the same conditions starting last September.

The new license replaces an earlier waiver issued in August 2024 that was due to expire next week. Treasury said that the waiver does not lift the broader ban on Russian-origin diamonds or transactions with sanctioned entities.

READ MORE: Russia sanctions are crippling EU ‘diamond mecca’ – media

Restrictions on Russian gems have shaken the global diamond market. Moscow has described the ban as evidence that Western nations have largely exhausted options for further sanctions. Russia, the world’s biggest producer of rough diamonds, accounting for about a third of global output before the restrictions, has since redirected its trade to China, India, the UAE, Armenia, and Belarus.