War in Ukraine: US Acts Against Alrosa and its CEO

(IDEX Online) - The US is implementing what it describes as "unprecedented and expansive sanctions" against Russia, which include Alrosa, the state-owned diamond company and its CEO Sergei Sergeevich Ivanov (pictured).

The moves against Alrosa, and a dozen other major Russian firms, are designed to "limit Russia's ability to finance its invasion against Ukraine or other priorities of President Putin," said the US Treasury Department last Thursday, as troops began their invasion of Ukraine.

The sanctions against Alrosa will "prohibit transactions and dealings by U.S. persons or within the United States in new debt of longer than 14 days maturity and new equity," it said, but they do not prohibit normal business dealings.

In response, an Alrosa spokesman said the company was "carefully studying the new working conditions in connection with the imposed sanctions.

"We do our best to guarantee the integrity of our operations, trading activities and interaction with clients, including the work of our US office. The company intends to continue its work as normal in the current conditions."

In addition, Sergei Sergeevich Ivanov, CEO of Alrosa, has been classified as a Specially Designated National (SDN) by the Office of Foreign Assets Control (OFAC), as has his father Sergei Borisovich Ivanov, described by the US Treasury Department as "reportedly one of Putin's closest allies".

Alrosa said: "It should also be mentioned that Sergey Ivanov never had assets abroad."

The US Treasury Department described Alrosa as "the world's largest diamond mining company, responsible for 90 per cent of Russia's diamond mining capacity, which accounts for 28 per cent globally".

The EU has taken no action against Alrosa or its CEO, but has added Sergei Borisovich Ivanov to its list of people "subject to restrictive measures" for their support of Russia's recognition of the self-proclaimed republics of Donetsk and Luhansk.