(MENAFN) In a significant escalation of sanctions against Russia, the European Union (EU) has targeted Alrosa, the state-controlled titan in the diamond manufacturing sector, along with its CEO, Pavel Marinichev. This move comes as part of the EU's broader strategy to curb revenues flowing to the Kremlin against the backdrop of the ongoing conflict in Ukraine. The EU had previously instituted a comprehensive sanctions package on Russia in December, which notably encompassed a prohibition on the export of Russian diamonds, a measure aimed at diminishing financial resources available to the Russian government.
The inclusion of Alrosa and its chief executive on the EU's blacklist signifies a stringent stance, entailing both a visa prohibition and the freezing of assets within the EU jurisdiction. The European bloc underscored the strategic significance of targeting Alrosa, highlighting its dominant position in Russia's diamond industry, accounting for a staggering 90 percent share of the nation's diamond production. The EU's rationale for sanctioning Alrosa emanates from its recognition of the company's pivotal role in generating substantial revenues for the Russian government, thereby serving as an economic lifeline amidst broader geopolitical tensions.
Accordingly, the EU's embargo on Russian diamond exports came into effect on January 1, targeting both natural and synthetic diamonds originating from Russia. Furthermore, the sanctions outline a phased approach, encompassing a prohibition on Russian diamonds that have been processed or manufactured in third countries, with full implementation slated for completion by September. With the volume of Russian diamond exports approximating nearly USD4 billion in 2022, these sanctions signal a concerted effort by the European Union to exert economic pressure and reshape trade dynamics in response to Russia's actions on the international stage.
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