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Rapaport Press Release: Rapaport Requests OFAC Exemptions For Russian Sanctions

March 19, 2024 at 14:33 PM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

In response to US sanctions regulations effective March 1, Martin Rapaport, Chairman of the Rapaport Group, sent a detailed letter to the US Office of Foreign Assets Control (OFAC). The letter addressed several highly problematic issues related to sanctions restrictions for polished diamonds produced prior to March 1, 2024, and an exemption for all diamonds in the US, including recycled diamonds and pre-owned jewelry. OFAC quickly responded saying they will review the letter and revert if they have questions.

In his letter, Martin Rapaport expressed strong support for efforts by the US government to reduce Russia’s revenue from the sale of diamonds. The letter requests a review and consideration of the "Rapaport US Diamond Protocol," which will eliminate Russian diamond revenue while protecting the interests of the US diamond trade. To date this initiative is supported by 1,587 members of the trade and the American Gem Trade Association.

“Our objective is to eliminate the flow of funds to Russia generated by the sale of Diamonds. It follows that Diamond imports or transactions that do not result in the transfer of funds to Russia should not be sanctioned. There should not be any sanctions restricting the trade or import of 'pre-war' diamonds unless they involve current sanctioned entities. Furthermore, all polished diamonds purchased or in existence before March 1, 2024, should be exempt from sanction regulations as Russia has already received payment for them,” said Martin Rapaport, Chairman of the Rapaport Group.

Industry professionals, jewelers, and supporters of an ethical diamond trade are encouraged to register their support for the Rapaport US Diamond Protocol by visiting rapaport.com/sanctions-protocol. A copy of the March 18, 2024, letter to OFAC is available here.

About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive and efficient diamond and jewelry markets. Established in 1976, the group has more than 20,000 clients in over 121 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Diamond Price List, as well as research, analysis and news; RapNet, the world’s largest diamond trading network; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at rapaport.com.