Skip to content
Search

Latest Stories

India urges US to release frozen funds over Russia diamond link

India has the world’s largest diamond processing capacity

India urges US to release frozen funds over Russia diamond link

INDIA has asked the US to allow the release of $26 million belonging to at least two Indian diamond firms that was frozen due to their alleged trade links with sanctioned Russian diamond major Alrosa, three Indian sources said.

The funds were frozen earlier this year due to US sanctions on Alrosa that were imposed in April 2022 by the US Treasury's Office of Foreign Assets Control, two of the sources said. Both the sources are Indian government officials, who declined to identify themselves or the companies, citing the sensitivity of the matter.


The freeze is the first known punitive sanctions measure against any Indian business since Russia's full-scale invasion of Ukraine last year and subsequent Western sanctions on Russian entities.

The diamond traders' funds were frozen when United Arab Emirates-based units of the unspecified Indian companies tried to transfer them to buy rough diamonds, one government source and one industry source said.

One of the sources said that banks halted the dollar transaction.

Reuters could not determine if the money was being transferred to Alrosa or another party.

"The government is aware of the OFAC action and has initiated dialogue over it," one of the Indian government sources said, without identifying the US counter party. "The problem was suspicion of trade links with Alrosa."

The Indian firms impacted by the action have told the government the payments were meant either for non-sanctioned Russian entities or for orders completed before the sanctions on Alrosa came into effect, the source said.

"OFAC itself does not freeze or block transactions," a US Treasury spokesperson said. "US persons are required to block or reject transactions in accordance with the relevant sanctions program."

Foreign banks or other entities running afoul of OFAC sanctions risk being cut off from the dollar-based financial system, but the Treasury does allow entities to apply for general or specific licenses to complete some transactions.

State-controlled Alrosa, the world's largest producer of rough diamonds, did not respond to an email seeking comment. India's trade and foreign ministries did not respond to requests for comment.

India has the world's largest diamond processing capacity and exported polished diamonds worth more than $22 billion last fiscal year that ended on March 31.

The industry, based mainly in Gujarat, buys rough diamonds from suppliers in countries such as the United Arab Emirates, Belgium and Russia.

Alrosa has managed to maintain steady diamond sales despite the US sanctions, which were not followed by the European Union. Some G7 countries have called for tighter sanctions on Russia's diamond trade.

(Reuters)

More For You

modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less
Asda suffers nearly £600m loss as debt and IT costs surge

Asda co-ownerMohsin Issa. (Photo: Asda)

Asda suffers nearly £600m loss as debt and IT costs surge

ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.

The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.

Keep ReadingShow less
Mounjaro

Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.

Reuters

Lilly to sell Mounjaro pens in India as Wegovy enters market

ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.

The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.

Keep ReadingShow less