U.S. sanctions top diamond miner, Russia's Alrosa
(Kitco News) - Yesterday, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated Alrosa, a Russian state-owned enterprise and the world's largest diamond mining company.
According to a press-release, through this designation, Treasury is cutting off additional sources of support and revenue for the Government of the Russian Federation (GoR) to wage its unprovoked war against Ukraine.
"These sanctions will continue to apply pressure to key entities that enable and fund Russia's unprovoked war against Ukraine," said Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. "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."
OFAC noted that Alrosa is a Russian state-owned enterprise and the world's largest diamond mining company, accounting for 28 percent of global diamond mining. In 2021, Alrosa generated over $4.2 billion in revenue. Alrosa operates across nine countries and ten regions of Russia.
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As previously announced, on February 24, 2022, OFAC identified Alrosa as subject to prohibitions pursuant to Directive 3 under E.O. 14024, "Prohibitions Related to New Debt and Equity of Certain Russia-related Entities" (Russia-related Entities Directive).
Yesterday, OFAC said it 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.
OFAC added that all entities owned 50 percent or more, directly or indirectly, by Alrosa are blocked under E.O. 14024, even if not separately designated or identified by OFAC.
OFAC explained that all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or otherwise exempt.