US froze $26m fund transfers by Indian diamantaires
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury has frozen $26m on accounts belonging to the Indian jewellery companies that are suspected of importing diamonds from Russia, TASS reports with reference to The Economic Times
According to the source, the accounts of offshore firms of the Indian jewellery companies, most of which are registered in the UAE, have been frozen. These firms are allegedly suspected of having links with Russian mining companies or the enterprises on the sanctions lists.
"We, as the industry body, have taken up the matter with the Ministry of Commerce and the Indian Embassy in the UAE because the payments for imports were made by UAE subsidiaries of Indian diamond companies. Around $26m, involving about a dozen payments, are stuck,” Vipulbhai Shah, the Chairman of the Gem & Jewellery Export Promotion Council, said.
According to the publication, the OFAC actions may be related to the statement made in February by the G7 leaders. They then promised to ‘work collectively on further measures on Russian diamonds, including rough and polished ones’.
