OFAC froze $26 million in accounts of companies suspected of importing diamonds from Russia

The Office of Foreign Assets Control has frozen $26 million in accounts belonging to Indian jewelry companies for alleged diamond imports from Russia.

The accounts of offshore firms of Indian jewelry companies, most of which are registered in the UAE, were frozen. They are suspected of having links with Russian mining companies or companies already on sanctions lists, the newspaper said.

“We as an industry organization have raised the issue with the commerce ministry and the Indian embassy because remittances for imports were made by units of Indian diamond cutters in the UAE. About $26 million in about a dozen remittance transactions have been frozen,” said Vipulbhai Shah, chairman of the Gem and Jewelry Export Promotion Council (GJEPC).

According to the newspaper, OFAC’s actions may be related to the February statement of the G7 leaders, when they promised to “collectively work on further measures against Russian rough and polished diamonds”. GJEPC Vice Chairman Kirit Bhansali told the newspaper that India plans to hold consultations with the G7 countries on the issue, but did not specify in what format. He said the Indian government is trying to reach an understanding with them to “ensure uninterrupted supply of rough diamonds while respecting the interests of the U.S. authorities.” In addition, the UAE authorities are also discussing the issue with OFAC.

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