As a reaction to the ongoing war in Ukraine, the European Union has decided to add Alrosa, the largest diamond-mining company in the world owned by the Russian state, and its CEO Pavel Alekseevich Marinychev to the sanctions list.
Announcing the news, the foreign policy chief of the EU, Josep Borrell, said that the new listing comes as part of the 12 package of sanctions.
Borrell further stressed that this move aims to deprive the state of Russia of this important revenue source.
In line with the diamond ban we have introduced with the 12th package of sanctions, the EU today lists Alrosa, the largest diamond-mining company in the world & its CEO.
As the Council of the European Union explained, Alrosa accounts for more than 90 per cent of all Russian diamond production.
The company also is an important part of the country’s economic sector, providing significant revenue to the government of Russia.
Since the company provides substantial revenue to the country, the Council said that the ban comes as an effort to deprive Russia of this source of revenue.
The ban on Russian diamonds is part of a G7 effort to develop an internationally coordinated diamond ban that aims at depriving Russia of this important revenue source.
In line with the sanctions, Pavel Alekseevich Marinychev and his company are subject to an asset freeze. All EU citizens and companies are forbidden from making funds available to them.
Moreover, Pavel Alekseevich Marinychev is also now subject to a travel ban. The travel ban means that he is not allowed to enter or transit through the territories of the EU.
Those designated are subject to an asset freeze, and EU citizens and companies are forbidden from making funds available to them. Natural persons are additionally subject to a travel ban, which prevents them from entering or transiting through EU territories.
Data has shown that Alrosa made a revenue of around €1.7 billion in the first six months of 2023. However, the profits started to fall after that period, registering a 35 per cent drop.
The main shareholders of Alrosa are the government of Russia and regional administrations. On the other hand, about 30 per cent of the shares of the company are floating capital.
Altogether, the EU restrictive measures currently apply to almost 1,950 individuals and entities for undermining the territorial integrity, sovereignty, and independence of Ukraine.
