Ukraine Removes SRK from List of International War Sponsors

Surat : The National Agency on Corruption Prevention of Ukraine (NACP) has taken the Surat-based Shree Ramkrishna Exports (SRK), one of the world’s largest producers and exporters of diamonds, off its list of international sponsors of war.

This decision by the NACP follows allegations that SRK engaged in commercial dealings involving rough diamonds with Russia in 2023, thereby categorizing them as an ‘International War Sponsor.’

The NACP asserted that SRK substantially increased its diamond purchases from Russia in 2023, when compared to the figures from 2021. According to the agency, SRK procured a staggering $132 million worth of Russian diamonds in the first half of 2023, compared to a mere $59 million throughout 2021.

However, the NACP’s stance changed when SRK submitted an official statement in which they committed to following international obligations and pledged not to cooperate with Russian sanctioned entities.

In this statement, SRK emphasized that they are a highly respected ethical company with a firm commitment to peace and sustainability. The company also made it clear that they only engage with entities that share similar ethical principles, such as being members of the Responsible Jewellery Council (RJC) or certified by the Kimberley Process (KP) for rough diamond sourcing.

Furthermore, SRK affirmed that they have not engaged in any business dealings with sanctioned entities, including those involved in selling rough diamonds from Russia, or any other parties participating in conflicts. They declared that since January 2023, they have refrained from purchasing any rough diamonds from the Russian Federation and have updated their Rough Sourcing policy accordingly.

In addition, SRK expressed their support for initiatives aimed at peace, especially those led by the Group of Seven (G7) in collaboration with the Government of India, as facilitated through the Gem & Jewellery Export Promotion Council (GJEPC). They pledged to adhere to the procedures established for handling Russian diamonds, as jointly determined with the Government of India.

The NACP’s branding of SRK as an ‘International War Sponsor’ has far-reaching implications, particularly concerning the export of polished diamonds to the United States. U.S. consumers are known for their sentiment-driven choices, and Ukraine’s categorization of this Indian diamond company is expected to significantly impact exports, especially in the lead-up to the Christmas festival season.

Industry experts within the diamond trade speculate that, in light of Russia’s actions, American consumers are more inclined to support Ukraine, particularly when it comes to issues of human rights violations. The power of public sentiment in influencing consumer choices was evident in 2006 when the release of the Hollywood film ‘Blood Diamond,’ starring Leonardo DiCaprio, led to a significant drop in the export of diamonds from India.