US Extends Russian Diamond Import Waiver to 2027

(IDEX Online) - The US has extended a waiver allowing limited imports of Russian-origin diamonds until September 2027, a move seen as practical rather than a softening of sanctions.

The Office of Foreign Assets Control (OFAC) renewed General License 104B on August 26, pushing the expiry from September 1, 2026 to September 1, 2027.

The license covers certain "grandfathered" Russian diamonds that were physically located outside Russia before March 1, 2024 (for stones of 1.0 carat or more) or September 1, 2024 (for stones of 0.5 carats or more), and have not been re-exported to Russia since.

According to OFAC, the extension is intended to give importers additional time to bring eligible pre-sanctions stones into the US while complying with traceability and documentation rules.

The waiver does not lift broader restrictions on Russian diamonds, which remain subject to G7 and US sanctions.

Industry observers say the move reflects practical supply-chain realities and the time needed for traders to adapt to new origin and tracing rules.

The license applies only to narrowly defined categories and does not signal a relaxation of the overall sanctions regime.

The extension affects a specific segment of the market: polished and rough diamonds that were already in cutting centers or transit when the G7 sanctions framework took effect.

Many of these stones are held by Indian polishers and US importers who had been working under the assumption that the original September 2026 deadline would stand.

By pushing the deadline to 2027, OFAC gives these traders an additional year to document origin, secure compliance certifications and move inventory without triggering penalties. The alternative - forcing a rushed disposal or write-down of eligible stones - could have created market distortion and unintended losses for businesses that are not the target of the sanctions.

The volume of "grandfathered" Russian diamonds is believed to represent a very small proportion of total global production, likely well below 5% of annual supply.

Russia accounts for roughly 30% of rough diamond output by volume, but the subset of stones that qualify under the OFAC license - those already outside Russia before the 2024 cutoffs and not re-exported - is a narrow slice of that total.

The decision comes as the global diamond market grapples with weak demand, high inventories and regulatory uncertainty. US policymakers have been balancing sanctions enforcement with the impact on downstream jewelry manufacturers and retailers.