(IDEX Online) - The Indian government has reportedly asked the US to release $26m of payments made by Indian businesses attempting to buy rough diamonds from Russia.The transactions were blocked by the Office of Foreign Assets Control (OFAC), which imposed sanctions on Alrosa, the state-controlled diamond company after Russia invaded Ukraine last February.But Indian traders are adamant the payments were not in breach of US sanctions.Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), insisted last month that the payments were either made to non-sanctioned entities, or were made before the sanctions were imposed.A Reuters report cites unnamed Indian government officials who say approaches have now been made to unfreeze the assets - the first known measure against Indian businesses linked to the war in Ukraine.The blocked funds are understood to relate to some UAE subsidiaries of Indian companies.Neither India nor the UAE has sanctioned rough diamonds from Russia. The US has, although its ban does not apply to diamonds cut and polished outside Russia.Pic courtesy Alrosa shows rough diamond sorting.