EU imposes sanctions on Russia’s Alrosa in diamond import ban
The European Union has taken another step in tightening sanctions against Russia, imposing measures on state-run diamond giant Alrosa and its CEO in a move to ban imports of the precious stones over the Ukraine war.
In December, the EU agreed to prohibit diamonds exported from Russia as part of efforts to further undermine the Kremlin’s finances. The ban went into effect on January 1 for natural and synthetic diamonds, with a phase-in plan for diamonds processed in third countries by September.
The 27-nation bloc added Alrosa, the world’s largest diamond mining company, and its chief executive Pavel Marinychev to a blacklist subject to a visa ban and asset freeze in the EU. According to the EU, the company, which accounts for 90 percent of Russia’s diamond production, “constitutes an important part of an economic sector that is providing substantial revenue to the government.”
Russia’s diamond exports totaled around $4 billion in 2022. The EU’s ban comes after months of negotiations with G7 countries to set up a system to trace Russian diamonds, with Belgium, home to the world’s biggest diamond trading hub, pushing for an effective embargo.
The EU has so far imposed 12 rounds of unprecedented sanctions on Moscow since Russian President Vladimir Putin launched the all-out invasion of Ukraine in February 2022. Despite the sanctions, the Russian economy has managed to adapt to the dislocations caused by the conflict.
The decision to impose sanctions on Alrosa is the latest move in the EU’s efforts to impose economic pressure on Russia to end its aggression in Ukraine. As the conflict continues, the EU is taking steps to expand its geopolitical reach and shape its foreign policy in response to Russia’s actions.