EU sanctions Russia’s diamond producer Alrosa

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EU sanctions Russia's diamond producer Alrosa

Russia’s state-run diamond company Alrosa and its CEO have been hit with sanctions by the European Union. This is part of a ban on importing diamonds because of the conflict in Ukraine.

In December, the EU agreed to stop importing diamonds from Russia as part of stricter sanctions meant to hurt the Kremlin’s finances even more.

The EU’s 27-nation bloc put the world’s biggest diamond mining company, Alrosa, and its CEO, Pavel Marinychev, on a blacklist on Wednesday. This means that they will not be able to enter the EU and their assets will be frozen.

It is said by the EU that the company, which makes 90% of Russia’s diamonds, “forms an important part of an economic sector that brings in a lot of money for the government.”

In 2022, Russia sent out about $4 billion worth of diamonds.

Sanctions never seen before

Natural and man-made gems from Russia are no longer allowed to be sent to the EU after January 1.

Russia will not be able to handle diamonds made in other countries after September.

Months of difficult talks with the G7 countries to set up a way to track Russian gems led to the ban.

Belgium, which has the busiest diamond trade hub in the world, argued that the system had to be set up for any embargo to work.

Since Russian President Vladimir Putin invaded Ukraine in February 2022, the EU has hit Moscow with 12 rounds of penalties that have never been seen before.

So far, though, Russia’s economy has been able to handle the sanctions and changes in the economy caused by the war.

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