In what could be a blow for Russia, the United States has designated state-owned mining company Alrosa to its Specially Designated Nationals (SDN) list, increasing sanctions that have substantial economic impacts on Russian companies.
The order, issued by the Treasury Department’s Office of Assets Control, adds to existing sanctions barring US companies from doing business with the mining company, freezing all of Alrosa’s US assets and barring US companies from dealing with the mining giant.
The new sanctions directive also covers companies owned by international conglomerates that directly import rough and polished diamonds from Russia that were previously not explicitly covered by the sanctions imposed by the United States in March.
“These sanctions will continue to put pressure on key identities enabling and funding Russia’s unprovoked war on Ukraine,” said Brian Nelson, Treasury Department’s Undersecretary for Terrorism and Financial Intelligence.
He also noted that the actions “reflect our continued efforts to restrict the Kremlin’s access to assets, resources and sectors of the economy that are critical to supplying and financing Putin’s brutality.”
Alrosa, which is 33% owned by the Russian government, was also sanctioned earlier by the UK, New Zealand, Canada and the Bahamas.
Following Russia’s invasion of Ukraine, the US government named Alrosa as one of the companies facing “expansive economic measures” to disrupt the global diamond supply and trade.
The original sanctions order prohibited U.S.-based companies from pursuing all new activities and financial transactions with the companies identified in the directive.
The order also implicated Russian elites and families suspected of being closely associated with Russian President Vladimir Putin, which targeted Alrosa CEO Sergei S. Ivanov, whose father, Sergei B. Ivanov, was also identified as a Russian government official.
Alrosa is one of the largest international mining companies headquartered in Russia. It represents about 95% of the diamonds produced in the country and about 30% of the diamonds mined in the world.
As a result of the sanctions, the company also removed many of its positions as presidents and members of international organizations and boards.
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