Today, 3-12-22, Biden Bans the importation of Russian diamonds

[kenny]

SNIP:
... "President Biden on Friday issued an executive order prohibiting imports of certain products originating in Russia.
They include fish, seafood, luxury goods, alcoholic beverages and nonindustrial diamonds."

Key supply of diamonds caught up in Russia sanctions

Far-reaching global sanctions against Russia for its invasion of Ukraine are affecting the global supply of a precious commodity -- the diamonds used in jewelry.

www.cnn.com

 

[Karl_K]

Maybe, but probably not.
Very few diamonds both rough and polished are imported into the US by Russian companies.
The majority is imported into India to be cut then they become according to international law a product of India.
Banning a product of India is a much harder process involving international treaties and probably the wto if they chose to object.
Its a mess.

Edit: dont get me wrong I want to see Russia punished for what they are doing. I am just being a realist in pointing the above out.

 

[kenny]

The article addresses this and the need for more clarification ...

SNIP

"On Friday, JVC advised its members that any US business purchasing diamonds directly from a Russian company should immediately halt the transactions. The warning specifically mentioned Alrosa and Alrosa USA.

At the same time, JVC said it isn't clear how US Customs will treat imports of polished diamonds that come from other countries but originated in Russia. A raw diamond can touch many countries as it goes from an uncut gem to a beguiling necklace or ring.

"The issue is 'what is considered of Russian origin?'" Stevens said. "It can originate in Russia and is then cut and polished in India. Is it then considered an Indian diamond at that point?"
The diamond industry would benefit from further guidance from the US government on how the new policy would be applied, she added.

 

[caolsen]

What will happen to diamond prices if russia gets new sanctions

What will happen to diamond prices if russia gets new sanctions?

www.pricescope.com

From a few days ago - with commentary from a few PS Trade legends…

 

[kenny]

Thanks Caolsen.

 

[Garry H (Cut Nut)]

Maybe, but probably not.
Very few diamonds both rough and polished are imported into the US by Russian companies.
The majority is imported into India to be cut then they become according to international law a product of India.
Banning a product of India is a much harder process involving international treaties and probably the wto if they chose to object.
Its a mess.

Edit: dont get me wrong I want to see Russia punished for what they are doing. I am just being a realist in pointing the above out.

Exactly Karl and thanks Caolsen for connecting the other thread.
I think this is a very vexed issue as per the point I made in that thread.
Most of the people mining diamonds in Russia consider them selves like the poor Ukrainians will after Putin inevitably overtakes their nation on his pat to recreating the USSR.
The vast majority of diamonds are mined by very poor people from Yakutia. This is further from Moscow than you can imagine and very very cold.
Have a look at the google map link and roam around this place.

Google Maps

Find local businesses, view maps and get driving directions in Google Maps.

www.google.com

 

[caolsen]

Exactly Karl and thanks Caolsen for connecting the other thread.
I think this is a very vexed issue as per the point I made in that thread.
Most of the people mining diamonds in Russia consider them selves like the poor Ukrainians will after Putin inevitably overtakes their nation on his pat to recreating the USSR.
The vast majority of diamonds are mined by very poor people from Yakutia. This is further from Moscow than you can imagine and very very cold.
Have a look at the google map link and roam around this place.

Google Maps

Find local businesses, view maps and get driving directions in Google Maps.

www.google.com

There is a reason exile was in Siberia, from the Tsars to Stalin… cold, dark, and dangerous…

 

[fel]

Folks, the diamond are mined by the poor but the miners are NOT the owners of the diamonds/mines. The owners/investors are no doubt wealthy corrupt oligarchs who have supported Putin's autocracy. The miners themselves are going to get their absolute minimum sub-livable wages, and lead miserable lives under Putin, regardless of any sanctions.

Put it this way -- as Amazon.com has made billions, has that made the warehouse workers and drivers rich? No, of course not. They continue to need to work 2 or 3 jobs to survive, no matter how much Amazon earns.

Economic sanctions are basically the ONLY weapon we have against Russia because it is a nuclear power and autocracy with absolutely no checks on power. Russia right now is committing genocide. We should use the weapon we have, or we are complicit. It might be painful in all kinds of ways to cut off large swatches of the world market. But we do it in order to support the people of Ukraine who are being slaughtered by the same man/group of men who profit from those diamond sales.

 

[Garry H (Cut Nut)]

Folks, the diamond are mined by the poor but the miners are NOT the owners of the diamonds/mines. The owners/investors are no doubt wealthy corrupt oligarchs who have supported Putin's autocracy. The miners themselves are going to get their absolute minimum sub-livable wages, and lead miserable lives under Putin, regardless of any sanctions.

Put it this way -- as Amazon.com has made billions, has that made the warehouse workers and drivers rich? No, of course not. They continue to need to work 2 or 3 jobs to survive, no matter how much Amazon earns.

Economic sanctions are basically the ONLY weapon we have against Russia because it is a nuclear power and autocracy with absolutely no checks on power. Russia right now is committing genocide. We should use the weapon we have, or we are complicit. It might be painful in all kinds of ways to cut off large swatches of the world market. But we do it in order to support the people of Ukraine who are being slaughtered by the same man/group of men who profit from those diamond sales.

The oligarchs of ALROSA and CEO have already been sanctioned. New western investment has been curtailed.
There are several western funds that take pension money with small holdings including BlackRock.
But notably the local governments from Yakutia hold 25%.
As a public company all the senior managers are known as are the Directors.

ALROSA: Shareholders Board Members Managers and Company Profile | RU0007252813 | MarketScreener

ALROSA: Company profile, business summary, shareholders, managers, financial ratings, industry, sector and market information | Moscow Micex - RTS: ALRS | Moscow Micex - RTS

www.marketscreener.com

 

[fel]

@Garry H (Cut Nut) Respectfully, a few responses

(1) We know that we can only sanction the oligarchs to the extent that we can find their money. They have a lot of hidden money, so we need a multi-prong approach. Hence, the additional sanctions.

(2) I will say that by definition, anyone who owns 25% of a diamond mine, or even 1% or ..05% , is not poor and living in a yurt. If you are correct that the town directors own 25% (because that is not my interpretation of the link you sent), I can bet you that those town directors are NOT the actual miners. I spent some time living under the soviet system -- let's just say, it was not equitable, and there was a lot of corruption. Apparently, under any system, those lowest on the totem pole do not get much.

(3) Any cutter or diamond seller in the West should want to be very very careful to not be on the wrong side of history on this. Really. Assuming the world survives this, Russia and Russian products are going to be tainted for a long long time, unless there is a major regime change. No one wants diamonds that support the killing of mothers and newborn babies as they lay in the hospital.

You know, the original Volkswagon company used slave labor from the Jewish people in concentration camps. For 2 generations my family would not buy VW. That was BEFORE social media.