Russia Diamond Compliance — ALROSA Sanctions

Russia is the world's largest producer of rough diamonds by volume, with ALROSA accounting for approximately 28% of global rough diamond production. Following Russia's invasion of Ukraine in 2022, the G7 countries imposed restrictions on Russian diamonds, creating significant compliance challenges for the global diamond industry.

G7 Diamond Restrictions

From January 1, 2024, the G7 countries (US, EU, UK, Canada, Japan, Australia, and others) banned the direct import of Russian diamonds. From March 1, 2024, a traceability-based mechanism was introduced requiring diamonds processed in third countries (primarily India and Belgium) to be certified as non-Russian origin. The restrictions apply to diamonds of 1 carat or larger.

Compliance Requirements

Companies importing diamonds into G7 countries must: verify that diamonds do not originate from Russia; maintain documentation of diamond origin; comply with the G7 traceability mechanism for diamonds processed in third countries; and screen transactions against OFAC and other sanctions lists for ALROSA-related entities.