Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict.

The US has designated Russian diamond miner Alrosa in the latest punitive action against Russia for its military attack on Ukraine.

This decision has been made pursuant to Executive Order (E.O.) 14024, which expands earlier sanctions imposed on the state-owned enterprise (SOE) by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).

A Treasury statement stated: “Today OFAC is expanding previous sanctions by designating Alrosa pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the GoR.“

Entities owned 50% or more, directly or indirectly, by the miner have been blocked under the executive order. 

The UK, Bahamas, New Zealand, and Canada have also sanctioned the company, which is said to be the biggest diamond mining firm in the world. 

Diamonds represented more than $4.5bn in Russian exports last year. In terms of value, diamond is considered one of the country’s top ten exports in the non-energy segment.

Alrosa constitutes 28% of global diamond mining and 90% of the diamond mining capacity in Russia.

Last year, the miner reported revenues of more than $4.2bn.

US Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson said: “These sanctions will continue to apply pressure to key entities that enable and fund Russia’s unprovoked war against Ukraine.  

“These actions, taken with the Department of State and in coordination with our allies and partners, reflect our continued effort to restrict the Kremlin’s access to assets, resources, and sectors of the economy that are essential to supplying and financing Putin’s brutality.”