Policies & Issues

When It Comes to Russian Diamonds, Industry Is Watching, Waiting

Policies & IssuesMar 02, 2022

When It Comes to Russian Diamonds, Industry Is Watching, Waiting

The longer Russia’s assault on Ukraine continues, the more complicated the situation becomes for the jewelry industry.

2022_Alrosa Mir mine.jpg
An aerial view of Mir, an open-pit diamond mine in the Sakha Republic operated by Alrosa. Alrosa was one of the companies sanctioned by the U.S. government following Russia’s invasion of Ukraine, a step that could have huge implications for the jewelry industry. (Photo courtesy of Alrosa)
New York—In the week since the United States first levied sanctions on one of the industry’s largest diamond suppliers, one thing has become clear—the situation is complicated, and no one knows quite where the industry goes from here.
 
Russian diamond miner Alrosa fell under the second round of U.S. sanctions announced last week after Russia launched a deadly, unprovoked assault on Ukraine, creating a humanitarian crisis and drawing criticism from nearly every corner of the globe.
 
As previously reported, the sanctions are not a total ban on doing business with Alrosa, but the situation is murky. 

Russia’s primary banks are sanctioned, which could complicate any financial transactions with Alrosa, as is the company’s CEO, Sergey Ivanov Jr. 
 
Considering the sanctions on Alrosa, the banks and Ivanov, the Jewelers Vigilance Committee recommends companies check the lists of sanctioned companies and individuals, which are available here and here, to ensure they are not doing business with any of them.
 
Jewelers of America, meanwhile, issued a statement late Monday advising its members to stop buying or selling diamonds, precious metals and gemstones of Russian or Belorussian origin.

It is also a good time for companies to review their anti-money laundering programs, JVC said.
 
In an interview Tuesday, diamond industry analyst Paul Zimnisky noted the midstream section of the market—cutters and polishers based mainly in India—will be first to feel the effects of the sanctions, as the country’s Gem & Jewellery Export Promotion Council noted in a statement to Rapaport.
 
Rough diamonds being cut and polished today won’t end up in U.S. retailers’ hands for 3-5 months, and no one can say with any certainty what the situation will be then.
 
But, what about the diamonds that are already in the United States? 
 
According to JVC, the restrictions placed on Alrosa do not apply to goods obtained from Alrosa or Alrosa USA before Feb. 24, the day the sanctions took effect. And the diamonds are already paid for, meaning they aren’t currently adding to the coffers of the Russian government as it advances in Ukraine.  
 
Zimnisky also pointed out that while the Russian government does own 33 percent of Alrosa, another 33 percent is owned by the government of Sakha (Yakutia), the remote region where Alrosa has most of its mines and where local populations rely on diamonds for their livelihood. 
 
But, from vodka to caviar, there is a groundswell of disdain for Russian products, an irony for Alrosa, which, like the rest of the diamond trade, has spent an extraordinary amount of time and money making sure its stones are traceable from mine to market and can reliably be sold as Russian diamonds.
 
“Sanctions aside, I think the biggest impact for the industry could be if the Western consumer becomes reluctant to buy Russian diamonds in protest. For many jewelers, one in three or four of the diamonds they hold in inventory are of Russian origin,” Zimnisky said. 
 
“So, this is a big deal for this industry, for sure.”

 Related stories will be right here … 
 
That fact is not lost on jewelry’s major players, who, so far, have said little to nothing publicly about Russian diamonds.
 
Signet Jewelers, Tiffany & Co., and Blue Nile did not respond to National Jeweler’s request for comment on how the sanctions will impact their business or their position on Russian diamonds. 
 
As of press time, nothing had been posted to their respective websites or social media accounts addressing the issue.
 
In fact, the only public reference any of these jewelers have made to the ongoing war and humanitarian crisis in Ukraine came from Signet's Banter by Piercing Pagoda, which posted to Instagram about backing Together Rising in its support of Ukraine, a post that was later removed.

The two retailers that did respond to National Jeweler were Ben Bridge and Helzberg Diamonds, both Berkshire Hathaway-owned companies.
 
Helzberg said, “Alrosa is not a Helzberg Diamonds business partner,” while Ben Bridge CEO Lisa Bridge said via email they “have not and do not” source directly from Russia. 
 
She added: “At Ben Bridge, we care deeply about protecting both people and the environment in every stage of the supply chain. We have always adhered to the highest ethical and quality standards in the industry to ensure that all of our diamonds and gemstones are mined and sourced responsibly … Today, we stand with the people of Ukraine and keep them in our hearts as they fight for their freedom.” 
 
The sole retailer to speak out publicly so far has been Brilliant Earth, which centers its brand on “responsible sourcing.” 
 
The retailer, which recently went public, posted a tweet over the weekend announcing it had removed all diamonds mined in Russia from its website, though it declined to comment when asked what percentage of its stock consists of Russian goods, citing a quiet period.
 
 
 
“At Brilliant Earth, we remain committed to transparency and responsibility, and offering products that meet our high standards,” the company wrote on Twitter. “We hope for a peaceful and swift resolution in Ukraine, and, like the rest of the world, are watching the situation there closely.”
 
Alrosa mined 32.4 million carats of diamonds in 2021, making it the world’s largest diamond producer alongside De Beers (32.3 million carats) and accounting for nearly 30 percent of global supply. 
 
Zimnisky said the potential impact on the diamond industry—which is already grappling with a shortage of rough and rising prices—from a supply standpoint is significant, akin to a disruption in the supply of uranium (which is enriched and used to power nuclear power plants) from Kazakhstan or cobalt (used in batteries for electric cars) from Congo, both of which account for one-third of global supply.
 
Russia also is a supplier of palladium and gold, with JVC noting Tuesday it is working to determine if there are repercussions for gold coming through Russia.
 
The longer the invasion of Ukraine and resulting sanctions on Russia continues, the greater the implications for the industry. 
 
“There is hope this is going to be resolved in the near term and, if so, the implications wouldn’t be as great. That is the hope,” Zimnisky said.
 
But, he concluded, “The longer it goes on, the more complex it gets.”
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Pomellato Mini London blue topaz and diamond bracelet
FinancialsJul 30, 2025
Kering's Jewelry Brands Resilient As H1 Sales Slide 16%

The luxury titan’s star brand Gucci continued to struggle amid a "tough" environment.

Zadok Rolex Austin
WatchesJul 30, 2025
Peek Inside Zadok Jewelers’ New Rolex Showroom in Austin

Its opening marks the completion of the retailer’s new 11,000-square-foot store in the Texas capital.

Crowd of people in a shopping mall
SurveysJul 30, 2025
Consumer Confidence Ticks Up in July

Respondents shared concerns about tariffs and commentary on the “Big Beautiful Bill.”

rio-article photo-diamond.jpg
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine Jewelry

As a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.

Making a Killing in Diamonds by Rob Bates
SourcingJul 30, 2025
Rob Bates to Release Latest Book in His ‘Diamond District Mystery’ Series

“Making a Killing in Diamonds” tells the story of Mimi Rosen, the disappearance of a scientist, and the murder of lab-grown diamond CEO.

Weekly QuizJul 25, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tacori bezel-set diamond bands
EditorsJul 29, 2025
Out & About: Visiting Tacori’s Design Studio in LA

Senior Editor Lenore Fedow learned a lot when she took a behind-the-scenes factory tour with the jewelry brand earlier this year.

Mighty Fierce Audacious Necklace, Sandy Rubin Aziza Necklace, Koulianos Designs Illuminations Shield Pendant
Events & AwardsJul 29, 2025
Melee The Show Welcomes 15 New Designers

The first-time exhibitors, set to debut at the New York City show, share a devotion to craftsmanship, storytelling, and material integrity.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

Auctim emerald auction
SourcingJul 29, 2025
Auctim to Offer 7.3M+ Carats of Rough Emeralds

The online auction house’s September sale will feature rough Brazilian emeralds of various qualities.

AGS Board President for 2025-2026 Alexis Padis
MajorsJul 29, 2025
Alexis Padis Re-Elected AGS Board President

She’ll lead an executive committee consisting of President-Elect Bryan Moeller, Mitchell Clark, Bill Farmer, and Larry Rickert.

Nanis Ipanema Collection Campaign
CollectionsJul 28, 2025
Nanis Brings a New Palette to ‘Ipanema’

A new edition of the Italian brand’s “Ipanema” collection has debuted with gemstones that evoke Brazil’s breathtaking views.

Kevin O’ Leary and George Mayer of The 1916 Company
MajorsJul 28, 2025
The 1916 Company Partners with ‘Shark Tank’ Star’s Watch Insurance Platform

The retailer will refer its customers to WonderCare, founded by venture capitalist and watch collector Kevin O’Leary.

Sissy’s new Little Rock store
IndependentsJul 28, 2025
Sissy’s Log Cabin to Open Flagship in Arkansas

The jeweler’s largest store yet is set to open in Little Rock next fall.

Jemma Wynne Forme Toggle Necklace
CollectionsJul 25, 2025
Piece of the Week: Jemma Wynne’s ‘Forme’ Necklace

Anne Hathaway was seen wearing the toggle necklace three times while filming scenes for “The Devil Wears Prada 2.”

September Hong Kong jewelry show
Events & AwardsJul 25, 2025
Pre-Registration Open for September Hong Kong Show

Jewellery & Gem World Hong Kong is scheduled for Sept. 15 to 21, and buyer pre-registration will be available until Sept. 7.

Bulgari Celestial Mosaic spinel necklace
FinancialsJul 25, 2025
LVMH Sales Slip in H1 Amid ‘Prevailing Uncertainties’

Renovations at Tiffany & Co. stores ate into profits in the company’s watch and jewelry division.

Mark and Candy Udell
Events & AwardsJul 24, 2025
2 Retailers to Receive 2026 Gem Award for Lifetime Achievement

Mark and Candy Udell of London Jewelers will receive the honor at the 24th annual Gem Awards next March.

De Beers marine mining vessel the SS Nujoma
SourcingJul 24, 2025
De Beers Sees Diamond Production Sink 36% in Q2

While struggles continue at the mining and trading end of the pipeline, consumer demand for diamond jewelry is holding steady.

Francesca Villa Fantasia Collection The Crab Pendant, The Mermaid Pendant, Keep Dancing Seahorse Pendant, Keep Dancing Ladybug Pendant, Secret Dreams Pendant, The Puffer Fish Takes Flight Pendant
CollectionsJul 24, 2025
Francesca Villa Adds Dimension to Her Intaglio Characters

The “Fantasia” jewelry collection turns the intaglio animals from her “Close Encounters” collection into 3D characters.

Breitling’s special Eagles Super Bowl watch on gold bracelet
WatchesJul 24, 2025
Breitling Drops Super Bowl Watch Honoring the Philadelphia Eagles

The special Classic Avi Chronograph 42 with an Eagles-green dial is limited to 59 pieces, a nod to the Super Bowl Philadelphia just won.

Stock image of crime scene tape
CrimeJul 23, 2025
JSA Warns of Violent String of Smash-and-Grabs in California

JSA has received reports of mobs swarming jewelry stores, driving cars into the storefront or smashing through the windows.

Silvia Furmanovich Kasmir Collection Carnelian Bracelet and Sketch
CollectionsJul 23, 2025
Silvia Furmanovich’s ‘Kashmir’ Collection Is a Tribute to Northern India

The “Kashmir” collection features centuries-old craft techniques made in collaboration with the region’s master papier-mâché artisans.

Bench jeweler holding a bracelet and a tool
IndependentsJul 23, 2025
Montreal’s Ecksand Eyes Move to SoHo

Creative Director Erica Bianchini shared why the jeweler is looking to expand into the U.S. and how it’s putting Canadian craftsmanship on the map.

LAFD Fire Station 44 and Fire Station 16
IndependentsJul 23, 2025
IJO Raises Nearly $37K for LA Fire Relief

Two Los Angeles Fire Department stations plan to use the donations to upgrade their equipment and tools.

A Vanitas by Hannah Martin and Guy Berryman Sothebys
CollectionsJul 22, 2025
Jewelry With a Rock ‘n’ Roll Aesthetic Heads to Sotheby’s London

Next week, the auction house will kick off a selling exhibition of jewelry by British artist Hannah Martin and Coldplay’s Guy Berryman.

Cover of the book “Flawless: Inside the Largest Diamond Heist in History”
SourcingJul 22, 2025
Antwerp Diamond Heist Documentary Coming to Netflix

“Stolen: Heist of the Century” is based on “Flawless,” the book about the middle-of-the-night theft, and will debut on Netflix in August.

Emmanuel Raheb
ColumnistsJul 22, 2025
The Gifting Gap: How to Market Jewelry Beyond the Holidays

Emmanuel Raheb shares the top five gifting moments outside of major holidays that jewelers should build marketing campaigns around.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy