Ukraine’s National Agency on Corruption Prevention (NACP) has added Shree Ramkrishna Exports Private Limited (SRK), a prominent Indian diamond firm, to its list of international sponsors of the war initiated by Russia against Ukraine in February 2022.
This move follows a renewed action plan by the G7 nations to expand sanctions, which would encompass gemstones mined in Russia and subsequently cut and polished in countries like India.
Allegations Against SRK
The allegations against SRK stem from claims that the company continued to purchase precious stones in Russia, thereby defying sanctions imposed on the former Soviet Union nation. Ukraine’s NACP has accused SRK of making “secret deals” for the purchase of diamonds worth hundreds of millions of dollars in Russia, even after international sanctions were introduced in April 2022 against Alrosa, the largest diamond miner globally.
Challenging the Allegations
According to the Ukrainian agency, SRK allegedly purchased diamonds worth $59 million in Russia in 2021, $198 million in 2022, and $132 million in the first half of 2023. SRK has strongly refuted these allegations, asserting that it has consistently operated within national and international guidelines and complied with all regulations issued by entities such as the UN, the Office of Foreign Assets Control of the US Treasury, and other national and international authorities. The company emphasized that it exclusively sources rough diamonds from countries that participate in the Kimberley Process and have certified origins.
Commitment to Peace and Harmony
SRK further clarified that it has never engaged in transactions with entities or individuals involved in conflicts or under UN, US OFAC, or Indian authorities’ sanctions. The company expressed its unequivocal commitment to peace and harmony.
Implications for India’s Gemstone Industry
The situation underscores the significance of the gemstone industry in India, where around 90% of the world’s diamonds are cut and polished. The G7 nations are likely to encourage India to help implement proposed stricter sanctions on the gemstone industry in Russia. These new sanctions are scheduled to take effect on January 1, 2024.
India’s Diplomatic Balancing Act
There was a lot of criticism of India from the West for not condemning the military aggression against Ukraine. It has long ties along with dependence on the Soviet Union for defense and advanced military hardware equipment.
The situation highlights the complex diplomatic and economic considerations that nations like India must navigate in the context of international conflicts and sanctions.
