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| India asks US to release funds frozen due to Russia sanctions. (Source: Reuters) |
The two companies had their assets frozen for allegedly doing business with Russia's major diamond company Alrosa.
The US Office of Foreign Assets Control (OFAC) – the financial body that oversees sanctions – froze the funds this year, according to two unnamed sources in the Indian government .
This is the first time OFAC has frozen the assets of an Indian company since the Russia-Ukraine conflict and since the West imposed sanctions on Moscow entities.
“The government is aware of OFAC’s action and has initiated dialogue on the issue,” a source in the Indian government revealed.
Alrosa - controlled by the Russian state - is the world's largest producer of rough diamonds. The company did not respond to an email requesting comment.
India has the world's largest diamond processing capacity and polished diamond exports were worth more than $22 billion in the fiscal year that ended on March 31.
The diamond industry, mainly based in the western state of Gujarat, buys rough diamonds from suppliers in countries such as the United Arab Emirates (UAE), Belgium and Russia.
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