US Extends Deadline for Grandfathered Russian Diamonds

Gems News: Sanctions and Shifting Deadlines

The United States government has extended the deadline for importing so-called “grandfathered” Russian diamonds by another year, offering temporary relief to the jewelry industry caught between sanctions and supply chain disruptions. Originally set for September 1, 2025, the import allowance has now been moved to September 1, 2026, under the U.S. Treasury Department’s updated General License No. 104A. This Gems News report highlights how the move underscores both the complexity of international sanctions and the ongoing tug-of-war between governments, industry groups, and global diamond markets.

Russian diamonds get reprieve for another year
Image Credit: Alrosa

The extension specifically covers loose non-industrial diamonds of Russian origin that were purchased prior to the sanctions timeline and were already outside of Russia before key cutoff dates. Diamonds of 1 carat or more must have left Russia before March 1, 2024, while stones between 0.50 and 1 carat must have been exported prior to September 1, 2024. Goods processed in cutting centers such as India, but physically outside Russia by those dates, are also included in the exemption.

Industry Reactions and Regulatory Context

The U.S. decision is part of a broader web of restrictions first implemented by the Group of Seven (G7) nations and the European Union (EU). Both blocs banned Russian-origin diamonds in late 2023, with phased restrictions expanding into 2024. While the EU introduced a centralized channel through Antwerp to monitor compliance, U.S. industry leaders have pushed against adopting such a model, warning it would drive up costs and limit competitive access.

Trade associations such as the Jewelers Vigilance Committee (JVC) and the American Gem Trade Association (AGTA) have long advocated for grandfathering clauses, arguing that diamonds acquired before sanctions do not provide financial benefit to Russia and should therefore remain eligible for trade. This advocacy helped influence not just U.S. policy but also European regulators, who introduced similar exemptions.

Russia is famous for high quality fancy-colored diamonds
Image Credit: Alrosa

Jewelry and Diamond Market Implications

The ruling has far-reaching consequences for jewelers and wholesalers who stocked Russian diamonds before sanctions were enacted. Many industry players feared that existing inventory stranded outside the U.S. would become unsellable, causing significant financial losses. The updated license now allows these goods to enter the U.S. market legally until 2026, giving companies more time to clear their stock.

Importantly, the authorization does not loosen restrictions on new Russian-origin diamonds, which remain banned. Only those physically located outside Russia before the cutoff dates are eligible. The license also reaffirms that businesses must still comply with all other federal laws and maintain proper documentation to prove eligibility. Industry experts stress that self-certification remains the norm, but companies are urged to be prepared with records in case of enforcement reviews.

A Divided Global Approach

While the U.S. has opted for an extended transition period, the EU’s stance on diamond traceability continues to evolve, with stricter controls scheduled for 2025. African diamond-producing nations have voiced concerns over centralized import models, warning that such systems could disadvantage their industries. The U.S. jewelry sector, meanwhile, remains wary of adopting a single import channel and prefers the existing self-certification approach, which is viewed as less costly and more flexible.

Looking Ahead

The extension to September 2026 offers temporary breathing room for American jewelers, but it also highlights the uncertain future of Russian-origin diamonds in global markets. With sanctions tightening worldwide and new traceability systems being developed, the industry faces an era of heightened scrutiny. Many players are now turning toward non-Russian sources to secure long-term stability, though the transition will not be without challenges.

The U.S. decision reflects a balancing act between enforcing sanctions and protecting domestic businesses from unintended harm. It also signals that ongoing advocacy by trade bodies like AGTA and CIBJO continues to shape the global conversation around ethical sourcing and compliance. What remains clear is that the diamond trade is entering a new phase where transparency, traceability, and geopolitics will play defining roles.

The latest developments reinforce the reality that while older stocks may find a pathway into U.S. markets, the industry must adapt quickly to a shifting landscape where Russian-origin gems will increasingly carry legal and reputational risks. The coming years will determine how successfully jewelers manage these changes while maintaining consumer confidence.

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