• The US Treasury has issued new licenses permitting the import of certain Russian-origin diamonds and jewelry already outside the country before specific cutoff dates.
  • The move provides a crucial, albeit temporary, relief valve for US jewelers and retailers holding pre-existing inventory, allowing sales through September 2025.
  • The action represents a calibrated adjustment to the broader G7 ban, balancing strict sanction enforcement against the risk of severe economic disruption for the domestic diamond industry.

The United States has moved to ease a significant pressure point for its diamond industry, authorizing the import of specific Russian-origin diamonds that were already outside of Russia before sanctions deadlines. The Treasury Department’s Office of Foreign Assets Control (OFAC) released two general licenses late Wednesday, creating a narrow but vital pathway for so-called "legacy" or "grandfathered" stones.

Under General License 103, the import of diamond jewelry containing Russian diamonds is permitted, provided the items were physically located outside of Russia before March 1, 2024, and have not been exported or re-exported from Russia since. A separate authorization, General License 104, covers loose, non-industrial diamonds. It allows the import of stones of one carat or more if they were outside Russia before March 1, 2024, and diamonds of 0.5 carats or more if they were outside the country before September 1, 2024. Both licenses are valid until September 1, 2025.

The decision offers a structured off-ramp for US importers, dealers, and retailers who have been grappling with significant uncertainty and potential financial losses on inventory stranded overseas due to the sweeping G7 ban. That ban was designed to curb revenue to Russia from its diamond trade following the invasion of Ukraine but created ambiguity over the status of goods that had already left Russian territory.

Industry trade groups, which had been lobbying for clarity, welcomed the development. Efforts to reach OFAC for additional comment on the timing of the decision were not immediately successful. The move aligns with a pattern seen in other commodity sanctions, where grandfathering clauses are often implemented to prevent market chaos for goods already in transit when a new policy is announced.

Looking ahead, the relief is explicitly temporary. The industry faces a hard deadline next year and must adapt to stricter long-term traceability standards. Beginning in April 2025, US Customs will require a country-of-mining disclosure for all diamond imports, a key step in the G7's effort to fully block Russian diamonds from Western markets. For now, however, the licenses provide a critical window for businesses to manage their existing stockpiles and adjust their global sourcing strategies.