EU imposes sanctions on Alrosa, Russia's largest diamond producer

In its twelfth series of sanctions, the European Union implemented restrictions on Alrosa, Russia's state-controlled diamond giant, and its CEO, as part of a wider ban on the importation of precious stones due to the conflict in Ukraine.

The EU's move, initiated in December, aimed to block diamond imports from Russia as an additional measure to undermine Kremlin finances, reported the Moscow Times. Despite past bans, some producers exploited a loophole by sending stones to countries such as India for polishing.

Alrosa, dominating 90 percent of Russia's luxury diamond trade, is a key sanctions target from the EU, with the aim to impact a sector significantly contributing revenue to the Russian government.

The ban, effective since January 1, covers both natural and synthetic diamonds exported from Russia, with restrictions on diamonds processed in third countries to be gradually enforced by September.

Belgium, the world's largest diamond trading hub, underscored the need for an effective system to implement the embargo, said Reuters.