The United States decision to impose tighter sanctions on Russian allrosa, the main players in the Indian gem industry and jewelry, are being evaluated, sources in the industry say on Friday.
“Blocking sanctions” in the largest diamond mining company in the world was announced by US Condition Minister Antony Blinken on Friday. “The United States imposes the blocking of sanctions on two Russian state-owned companies. We will continue to increase the cost of the war and the cruelty of President Putin who did not dilatebunilah against Ukraine,” he said.Diamond has become the main component of Indian-Russian trade in recent years and this sector also received attention at the top political level.
Biggest supplier
The latest sanctions on the main supplier of Russian rough diamonds to India, come for hours after India and the United States announced the Minister of Justice on April 11 “2 + 2” where Mr. Blinken and Defense Secretary Lloyd Austin will involve the Minister of External Affairs S. Jaisanhar and Defense Minister Rajnath Singh.Alrosa which has been recognized as a state-owned company (BUMN) by the Treasury Department A.S. Targeted by US authorities during the initial conflict in Ukraine. The Ministry of Finance department described Alrosa as the “largest diamond mining company in the world”, which supplies “90%” Russian rough diamonds. The Western capital describes the inventory of Alrosa as “Diamond Conflict” because of its relationship felt by Russian officials. Alrosa equipment to India has briefly stopped earlier this year but returned last month even when Indian gems and jewelry sectors wrestling with the challenges of making payments through German banks.
Chief Executive Alrosa Approved
Immediately after the start of the Russian military campaign, the chief executive of Alrosa, Sergei Sergeevich Ivanov, was approved by the US treasury. He is the son of Sergey B Ivanov, one of the nearest officials of President Vladimir Putin.Announcement A.S. Friday said the latest steps were “expanding previous sanctions by pointing at Alrosa”. The order says that all the nature of the alrosa that has American citizens is “blocked and must be reported” to the Office of Control of Foreign Asset (OFAC) Ministry of Finance. Therefore, all trade in Indian-Russian diamonds have the participation of US citizens. Tend to be affected.
The Ministry of Finance further tightened sanctions by stating “… each entity owned, directly or indirectly, 50 percent or more by one or more clogged people are also blocked. All transactions by Personal A.S. or in the United States (or transit) What involves property or interest in the property of designated or blocked people is prohibited unless authorized by general or specific licenses issued by OFAC, or released “
Special customs zone in Mumbai
Diamond trade between India and Russia found a new boost in 2015, when the customs zone was specifically created in Bharat Diamond Bourse in Mumbai to handle rough diamonds from Russia. During this time, India also showed a sharp interest in reaching Russian Astrakhan Province, which was a base for the Indian community that had been active in trading diamonds for generations. Pak Putin was the main guest at the World Diamond Conference on December 12, 2014 which was inaugurated by the Prime Minister of Modi.
Permata and the jewelery sector in India have a large workforce that suffers during a pandemic. Of a total of around 4.64 million workers in this sector, most are used in the diamond business. Indian diamond trade is very dependent on rough diamonds imported and restrictions on rough diamond supply can create serious problems for the gem and jewelry sector.