The European Commission has proposed to include diamonds in a series of sanctions imposed on Russia since its full-scale invasion of Ukraine, BBC reports.
The move is part of the EU’s 12th round of restrictions against Moscow which is expected to come into effect in January.
The bloc has already imposed sanctions on Russian coal, gas, gold, vodka, and caviar. However, other Russian profitable industries have not been included in the EU’s sanction list.
According to Ekonomichna Pravda, Russia still earns $20 billion a year from the export of metals and precious gemstones to Western markets.
Diamonds are one of Russia’s top ten non-energy industries by value, with exports in 2021 totaling over $4.5 billion, according to the US Department of the Treasury.
Russian gemstones are concentrated in the hands of the company Alrosa, responsible for 90% of the country’s diamond mining capacity.
The Kremlin has a large stake in the company which provides $1.5 billion to the country annually by selling precious gemstones to the European Union. The enterprise not only helps to finance Russia’s war against Ukraine but also supports the maintenance of the Black Sea fleet combat submarine named after the company — “Alrosa” – a carrier of cruise missiles.
Diamonds for Putin: Russia is still earning $ 20 bn on metals and gemstones
