Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain Policies & IssuesJul 01, 2022
U.S. Expands Sanctions to Russian Gold
The U.K, Canada, and Japan have also banned the import of gold originating from Russia.
The U.S. Treasury announced Tuesday that gold of Russian origin cannot be imported into the United States, effective immediately.
Washington—The U.S. Department of the Treasury has expanded its sanctions on Russian imports, this time including gold of Russian origin.
The Treasury announced Tuesday, June 28, that gold of Russian Federation origin cannot be imported into the United States, effective immediately, unless otherwise licensed or authorized by the Office of Foreign Assets Control (OFAC).
Excluded from this latest round of sanctions is gold of Russian origin shipped out of Russia before the sanctions were announced.
“Today’s actions .... strike at the heart of Russia’s ability to develop and deploy weapons and technology used for Vladimir Putin’s brutal war of aggression against Ukraine,” said the Treasury.
Even prior to the new sanctions, certain gold-related transactions involving Russia were sanctionable under an executive order as well as other Russia-related sanctions, noted the Treasury.
In updated guidance sent to members Wednesday, the Jewelers Vigilance Committee made the same point about pre-existing sanctions.
JVC also noted a change to OFAC’s FAQ section in regard to Russian gold. The update states that Russian gold that is “substantially transformed” in another country is not subject to sanctions, the same exception applied to Russian diamonds when they were sanctioned earlier this year.
“An example of substantial transformation of gold would be taking 24-karat gold bullion and making it into 18-karat wire,” explained Sara Yood, deputy general counsel at JVC.
“An example of an act that would likely not be viewed as substantial transformation would be putting findings onto a chain to make it a necklace,” she added.
JVC is advising businesses to proceed with caution.
“Businesses regularly importing gold from countries not listed above [meaning Russia] should be sure to talk to their suppliers about this new restriction and ensure they are not unknowingly importing Russian gold into the United States.”
Companies should also search the London Bullion Market Association’s “Good Delivery List,” said JVC, a list of vetted bullion suppliers that follow the association’s responsible sourcing guidelines.
Related stories will be right here …
The Treasury announced Tuesday, June 28, that gold of Russian Federation origin cannot be imported into the United States, effective immediately, unless otherwise licensed or authorized by the Office of Foreign Assets Control (OFAC).
Excluded from this latest round of sanctions is gold of Russian origin shipped out of Russia before the sanctions were announced.
“Today’s actions .... strike at the heart of Russia’s ability to develop and deploy weapons and technology used for Vladimir Putin’s brutal war of aggression against Ukraine,” said the Treasury.
Even prior to the new sanctions, certain gold-related transactions involving Russia were sanctionable under an executive order as well as other Russia-related sanctions, noted the Treasury.
In updated guidance sent to members Wednesday, the Jewelers Vigilance Committee made the same point about pre-existing sanctions.
JVC also noted a change to OFAC’s FAQ section in regard to Russian gold. The update states that Russian gold that is “substantially transformed” in another country is not subject to sanctions, the same exception applied to Russian diamonds when they were sanctioned earlier this year.
“An example of substantial transformation of gold would be taking 24-karat gold bullion and making it into 18-karat wire,” explained Sara Yood, deputy general counsel at JVC.
“An example of an act that would likely not be viewed as substantial transformation would be putting findings onto a chain to make it a necklace,” she added.
JVC is advising businesses to proceed with caution.
“Businesses regularly importing gold from countries not listed above [meaning Russia] should be sure to talk to their suppliers about this new restriction and ensure they are not unknowingly importing Russian gold into the United States.”
Companies should also search the London Bullion Market Association’s “Good Delivery List,” said JVC, a list of vetted bullion suppliers that follow the association’s responsible sourcing guidelines.
Jewelers of America also has resources and guidance regarding Russian goods available to members on its website.
“From very early in the crisis, Jewelers of America has been adamant in advising JA members to cease the purchase of goods used in jewelry that have emanated from Russia and benefit the Russian government,” JA President and CEO David Bonaparte told National Jeweler.
“The latest ban reinforces the need for jewelers to place heightened scrutiny into where diamonds, precious metals, and precious gemstones originate.”
The latest sanctions on Russia follow the meeting of world leaders at the recent G-7 summit in Munich, where the U.S., Canada, France, Germany, Italy, Japan, the United Kingdom, and the European Union met to discuss, among other topics, the war in Ukraine.
Several leaders agreed on an import ban on new gold from Russia in an attempt to hinder the flow of revenue funding the war in Ukraine.
The U.S., Canada and Japan are joining the U.S. in the ban.
The export of gold garners tens of billions of dollars for Russia, President Joe Biden said in a tweet.
The United States has imposed unprecedented costs on Putin to deny him the revenue he needs to fund his war against Ukraine.
— President Biden (@POTUS) June 26, 2022
Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia.
Secretary of the Treasury Janet Yellen said the ban “reaffirm[s] our commitment to working alongside our partners and allies to impose additional severe sanctions in response to Russia’s war against Ukraine.”
The sanctions also apply to an additional 70 Russian entities and 29 Russian individuals said to be critical to the country’s defense, industrial, technology, and manufacturing sectors.
“Broad multilateral commitments and actions by G7 members this week further cut off the Russian Federation’s access to technology that is critical to their military,” said Yellen.
“Targeting Russia’s defense industry will degrade Putin’s capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures.”
This is the latest round of sanctions against Russia to affect the jewelry industry.
The Treasury Department first sanctioned Russian diamond miner Alrosa and its CEO in February.
In March, President Biden banned the import of Russian diamonds to the U.S. via executive order.
In April, the U.S. government put Alrosa on the Specially Designated Nationals list, effectively preventing U.S. companies from doing any business with Alrosa.
Alrosa accounts for 90 percent of Russia’s diamond mining capacity, according to the Treasury, and the Russian government holds a 33 percent stake in the company.
It mined 32.4 million carats in 2021, making it the largest producer by volume and accounting for nearly 30 percent of global supply, with sales topping $4 billion.
The sanctions also apply to an additional 70 Russian entities and 29 Russian individuals said to be critical to the country’s defense, industrial, technology, and manufacturing sectors.
“Broad multilateral commitments and actions by G7 members this week further cut off the Russian Federation’s access to technology that is critical to their military,” said Yellen.
“Targeting Russia’s defense industry will degrade Putin’s capabilities and further impede his war against Ukraine, which has already been plagued by poor morale, broken supply chains, and logistical failures.”
This is the latest round of sanctions against Russia to affect the jewelry industry.
The Treasury Department first sanctioned Russian diamond miner Alrosa and its CEO in February.
In March, President Biden banned the import of Russian diamonds to the U.S. via executive order.
In April, the U.S. government put Alrosa on the Specially Designated Nationals list, effectively preventing U.S. companies from doing any business with Alrosa.
Alrosa accounts for 90 percent of Russia’s diamond mining capacity, according to the Treasury, and the Russian government holds a 33 percent stake in the company.
It mined 32.4 million carats in 2021, making it the largest producer by volume and accounting for nearly 30 percent of global supply, with sales topping $4 billion.
Editors' Picks
Sponsored by
More on Policies & Issues
The Latest
EditorsMay 07, 2024
Q&A: Author Vikki Tobak on the ‘Ice-Cold’ ExhibitionTobak, author of “Ice Cold: A Hip-Hop Jewelry History,” shares how the exhibition came to be, and the pieces people may be surprised to see.
EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
CollectionsMay 07, 2024
Phillip Gavriel Pays Tribute to Venice With New CollectionThe “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
Events & AwardsMay 07, 2024
JA Now Accepting Applications for New Bench Jeweler ScholarshipThe Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
