US sanctions Russian firm that produces 30% of world's diamonds

(Bloomberg) — The US Treasury has extended sanctions on Russian diamond miner Alrosa PJSC, potentially cutting off around 30% of the world's supply of rough stones.

Alrosa's customers, as well as other counterparts, must stop all deals with the state-controlled Russian mining company by May 7, according to a license from the US Office of Foreign Assets Control. Alrosa declined to comment.

Alrosa produces roughly the same amount of gems as De Beers, the iconic diamond company that had the monopoly until the beginning of this century. Russia competes with Botswana as the world's largest diamond producer, while the US is the most important market in the industry, accounting for about half of all sales.

US restrictions increase pressure on Alrosa, as the risk of cross-sanctions threatens to deter buyers from other regions. The European Union and the United Kingdom previously imposed sanctions on the mining company following the Russian invasion of Ukraine. The main markets in Alrosa, which employs some 32,000 people, are the US and Asia, including India.

Last month, the jewelers of the United States Tiffany & Co. and Signet Jewelers Ltd. said they would stop buying new diamonds mined in Russia as pressure increases on companies to remove the country's products from their supply chains.

Original Note:

U.S. Sanctions Russian Miner Producing 30% of World's Diamonds

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