Wont purchase Russian diamonds: NACP excludes India's SRK from the list of international war sponsors

13.10.2023

International corporations continue to limit their cooperation with Russia, unwilling to finance the war against Ukraine and further isolate Russia. The National Agency on Corruption Prevention (NACP) has removed one of the world's largest diamond companies, Shree Ramkrishna Exports (SRK), from the list of international sponsors of war. The company issued an official statement stating that it will comply with its international obligations and will not cooperate with Russian-sanctioned entities. In addition, the company declared its support for the current and future initiatives of the G7 countries to restrict the handling of Russian diamonds and refrain from purchasing them. India is one of the main buyers of diamonds, primarily rough diamonds from Russia, and the world's largest diamond production center. This decision by the company should weaken Russia's ability to wage war against Ukraine and its influence in the world. Currently, some countries in the sanctions coalition have bans on imports of Russian diamonds, but they apply only to rough diamonds. Some companies have found ways to circumvent such restrictions. Rough Russian diamonds are mixed with other diamonds and then sold as "mixed" goods. Also, the ban does not apply to Russian diamonds that have been processed in other countries. This creates significant gaps in the sanctions mechanism that allow companies such as Alrosa not only to fill the Russian military treasury with money but also to participate in the construction of military submarines and spread the Kremlin's influence to other continents. «Russia turns any product into a weapon and a tool for interfering in the internal politics of other states. The refusal of companies such as SRK to purchase Russian diamonds is a contribution not only to peace on the European continent but, above all, to the national security of India itself. The long-awaited decision of the G7, which we hope will be made soon, will be a historic milestone for the diamond industry. No one wants to receive a blood ring for a wedding or the birth of a child. The world wants to consume responsibly. And we believe that diamond producers will listen to their consumers and give them the pleasure of enjoying diamonds instead of worrying about the real origin of the stones,» said Oleksandr Novikov, Head of the NACP. The Agency welcomes SRK's decision and will monitor the fulfillment of the commitments undertaken by the company. SRK's refusal to purchase Russian diamonds and the company's exclusion from the register reinforce the effectiveness of the NACP's project "International Sponsors of War". Moreover, importantly, it is a direct proof that every international company has the right to choose whether or not to sponsor the war, i.e., whether or not to be included in the register. We would like to remind you that the NACP is the body responsible for the compliance system in the private sector. During compliance procedures, counterparties are subject to integrity checks, including socially responsible business conduct in accordance with OECD standards. The list of “International War Sponsors” on the “War and Sanctions” portal is a powerful reputational tool for achieving the integrity of supply chains in the international dimension, the exit of international business from Russia, thus reducing the financial and technological ability of the terrorist country to kill Ukrainians. One of the “leverages” of the platform is cooperation with the World-Check database, which is used by banks and insurance companies for risk assessment. That is why for global companies, the consequences of being on the list become worse than continuing to do business with the aggressor country.