In response to the ongoing war in Ukraine, the European Union has taken the decision to impose sanctions on Alrosa, the world’s largest diamond-mining company owned by the Russian state, and its CEO Pavel Alekseevich Marinychev.
The foreign policy chief of the EU, Josep Borrell, announced the inclusion of Alrosa and its CEO in the sanctions list as part of a 12-package set of sanctions. The aim of this move is to deprive the state of Russia of an important revenue source.
According to the Council of the European Union, Alrosa accounts for over 90% of all Russian diamond production and is a significant contributor to the country’s economy.
As a result of the sanctions, both Alrosa and Pavel Alekseevich Marinychev are subject to an asset freeze, and EU citizens and companies are prohibited from providing funds to them. In addition, Marinychev is now subject to a travel ban, preventing him from entering or transiting through EU territories.
Data has revealed that Alrosa generated revenue of approximately €1.7 billion in the first half of 2023, but profits began to decline after that, dropping by 35%. The company’s main shareholders are the government of Russia and regional administrations, with about 30% of the shares owned by floating capital.
Overall, the EU’s restrictive measures currently apply to nearly 1,950 individuals and entities for actions that undermine the territorial integrity, sovereignty, and independence of Ukraine. The move to sanction Alrosa and its CEO is part of a broader effort by the EU to respond to the conflict in Ukraine and hold Russia accountable for its actions.
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