RAPAPORT… The UK has placed sanctions on Russian diamond miner Alrosa in an effort to weaken its business and stem the flow of funding to President Vladimir Putin’s war on Ukraine.
“Today’s sanctions target key industries supporting Russia’s illegal invasion,” UK Foreign Secretary Liz Truss said last week. “These oligarchs, businesses and hired thugs are complicit in the murder of innocent civilians and it is right that they pay the price. Putin should be under no illusions — we are united with our allies and will keep tightening the screw on the Russian economy to help ensure he fails in Ukraine. There will be no let-up.”
Alrosa is one of a slew of new companies or entities the UK has added to its sanctions list. The government will freeze all of its UK assets, prohibit any citizen from doing business with it, and bar individuals subject to travel bans from entering or exiting the UK, the government explained.
The response follows Russia’s February 24 invasion of Ukraine. The US and the European Union have already imposed sanctions on the mining giant.
Alrosa reported revenue of $4.17 billion in 2021, from the sale of 45.5 million carats. Production for the year came to 32.4 million carats, nearly one-third of total global diamond output. However, only a small portion of Alrosa’s diamonds reach the UK.
Image: Rough diamonds. (Alrosa)
UK Lays Down Sanctions Against Alrosa
The Bottom Line
- The UK government imposed sanctions on Alrosa, freezing its UK assets and prohibiting UK citizens from conducting business with the company.
- Sanctions aim to disrupt funding to Russia amid its invasion of Ukraine, aligning with similar measures by the US and EU.
- Alrosa produced 32.4 million carats in 2021, about one-third of global diamond output, though only a small share of its diamonds enter the UK market.
Summary by Rapaport AI
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