JVC Update: Russian Sanctions

AGTA received the following message from Tiffany Stevens, CEO & General Counsel at JVC on the newest sanctions imposed on Russia:

After issuing an Executive Order on February 21, 2022 to impose restrictions on economic activity in certain regions of Ukraine today, the United States is taking additional action to respond to President Vladimir Putin’s decision to recognize the so-called Donetsk and Luhansk People’s Republics (DNR and LNR) as “independent” states and to deploy troops to these regions by sanctioning two major Russian state-owned financial institutions, imposing additional restrictions on Russian sovereign debt, and sanctioning five Kremlin-connected elites. Effectively, this bans U.S. businesses and persons from transacting with those named financial institutions and entities.  The full list of sanctioned entities and persons is available herehttps://home.treasury.gov/news/press-releases/jy0602

This action does not yet appear to directly affect Alrosa or any other diamond only businesses, however, U.S. businesses should evaluate whether any of their suppliers or customers are using bank accounts connected to these financial entities and if so, immediately cease transacting with those accounts.  U.S. businesses with concerns about business partners can also search the updated Office of Foreign Asset Control Specially-Designated Nationals list herehttps://home.treasury.gov/policy-issues/financial-sanctions/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists.

JVC is continuing to follow these developing sanctions and will keep the board and jewelry industry updated as needed. Additionally, we are following any actions in Congress to pass legislation on this issues that would impact the diamond trade. Please contact Tiffany Stevens or JVC Deputy General Counsel Sara Yood at sara@jvclegal.org with any additional questions.