EU diamonds sanctions target Russia's war chest
The European Union has tightened its grip on Russia's war chest by sanctioning its diamond giant, Alrosa, and its CEO, Pavel Marinichev, as reported by AFP and Reuters, quoted by Agerpres.
This targeted move, part of the ongoing response to the Ukraine invasion, aims to disrupt a lucrative revenue stream for the Kremlin.
"Alrosa constitutes an important part of an economic sector that provides substantial revenue to the Russian government," the EU declared, justifying the inclusion of the world's largest diamond producer on its blacklist. The sanctions, effective immediately, freeze Alrosa's assets and bar its executives from entering EU territory.
This latest blow follows months of negotiations and internal debate, particularly within Belgium, home to the bustling diamond hub of Antwerp. Concerns about collateral damage to the European diamond industry were eventually addressed through the implementation of a tracking system designed to differentiate between sanctioned Russian diamonds and those legally sourced elsewhere.
The impact of these sanctions remains to be seen, but the EU estimates that Russia's diamond trade, valued at around $4-5 billion annually, plays a significant role in financing the war in Ukraine. Moscow, unsurprisingly, has denounced the move as "counterproductive" and "harmful to legitimate players in the diamond market."
This isn't the first time the EU has targeted Russia's luxury goods sector. Previous sanctions have already restricted the export of high-end cars, clothing, and yachts. By targeting diamonds, the EU seeks to further choke off revenue streams potentially fueling the ongoing conflict.
The move also sends a broader message: the EU is committed to holding Russia accountable for its actions in Ukraine and is willing to use economic pressure to achieve that goal. Whether these sanctions will be effective in curbing the war remains a complex question, but they undoubtedly represent a significant escalation in the EU's economic response.
Translation by Iurie Tataru
