US Pushes Russian ‘Grandfathered’ Diamond Import Deadline to 2027

The United States has given the international diamond trade another year to bring certain previously purchased Russian-origin diamonds into the country, extending a key deadline that had been due to expire in September 2026. The move provides additional breathing room for dealers and manufacturers handling qualifying stones that were already outside Russia or moving through the global supply chain before sanctions took effect.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued an updated General License No. 104B, extending the deadline for eligible loose Russian-origin diamonds weighing 0.50 carats or more until September 1, 2027. The development, this Gems News report notes, represents the latest adjustment to rules designed to restrict revenues associated with Russian diamonds while allowing qualifying pre-sanctions inventory to continue moving through legitimate international trading channels.

Deadline Extended for a Second Time

The deadline has now been pushed back twice. US authorities initially established September 1, 2025, as the cutoff for importing qualifying “grandfathered” Russian diamonds. That date was subsequently extended until September 1, 2026, before the latest OFAC decision added another 12 months.

The new September 1, 2027, deadline applies only to diamonds meeting the conditions established under the relevant general license. It should therefore not be interpreted as a broad relaxation of US restrictions on Russian-origin diamonds.

For diamond businesses, the distinction is significant. Companies importing stones under the exemption must still ensure that their merchandise satisfies the necessary criteria, particularly concerning when the diamonds left Russia and their status before the sanctions became applicable.

How the Grandfathering Rules Work

The framework dates back to March 2024, when the United States tightened restrictions on Russian-origin diamonds and OFAC introduced General License No. 104.

That authorization provided a route for certain nonindustrial loose diamonds purchased before the sanctions took effect to enter the United States, even if those stones had not yet arrived in the country.

The provisions were particularly important for the global diamond manufacturing pipeline. Russian rough diamonds are frequently exported to major cutting and polishing centers, including India, before subsequently being sold into consumer markets such as the United States.

Under the rules, qualifying Russian-origin rough diamonds could have been sent to India or another manufacturing center for processing, provided they had left Russia before the applicable cutoff date.

For diamonds weighing 1 carat or more, the relevant departure deadline was March 1, 2024. For stones weighing from 0.50 carats to less than 1 carat, the applicable date was September 1, 2024.

The latest extension therefore addresses legacy inventory rather than opening the US market to newly exported Russian diamonds.

Diamond Jewelry Rules Remain Unchanged

While OFAC has extended the deadline covering qualifying loose diamonds, there has been no corresponding change to General License No. 103.

That authorization concerns certain Russian-origin diamond jewelry that was already outside the Russian Federation before the US restrictions introduced in March 2024 took effect.

The distinction between loose diamonds and finished jewelry remains important for importers, retailers and compliance departments, particularly as Russian-origin restrictions have become increasingly intertwined with documentation, provenance and supply-chain controls.

More Time for the Global Diamond Trade

The extension to September 2027 could provide welcome additional flexibility for companies still holding qualifying pre-sanctions Russian diamonds, especially stones that have passed through lengthy manufacturing, sorting, certification and distribution processes.

However, the extra year does not remove the compliance burden facing the trade. Importers will still need to establish that diamonds fall within the permitted grandfathered categories and satisfy the relevant dates and conditions.

As governments continue scrutinizing the origin and movement of diamonds through international markets, accurate documentation and traceability are likely to become even more important for manufacturers, dealers, jewelers and importers seeking access to the US market.

The latest decision ultimately gives the industry more time to clear legitimate legacy inventory without dismantling the wider restrictions on newer Russian diamond supplies. For businesses dealing in affected stones, the extension may ease immediate commercial pressure, but careful provenance records and sanctions compliance will remain essential well beyond the new September 2027 deadline.

Reference:

https://ofac.treasury.gov/media/936796/download?inline