Diamonds under Sanctions: The EU's Grip on Alrosa and CEO Marinychev

The Council of the European Union has recently introduced new restrictive measures against Russia in connection with its aggression towards Ukraine. The new inclusions target a major company and its CEO, scrutinizing PJSC Alrosa and Pavel Alekseevich Marinychev. Let's explore what this decision entails and what impacts it might have.

PJSC Alrosa, the world's largest diamond mining company, is now subject to sanctions due to its key role in the Russian economy and its implications in the context of Russian aggression against Ukraine. The state-owned company represents over 90% of Russian diamond production and is a significant source of revenue for the Russian government.

The decision to include PJSC Alrosa and its CEO in the sanctions list is a strategic move in the G7's efforts to develop a coordinated international ban on diamonds, aiming to deprive Russia of this significant revenue source.

The EU's restrictive measures now involve nearly 1,950 individuals and entities, subject to asset freezes and bans on EU citizens and companies providing funds to such entities. Additionally, individuals are subject to travel bans in EU territories.

The Council's decision is based on the December 2023 conclusions, reaffirming the condemnation of Russia's aggression against Ukraine and the EU's unequivocal support for Ukraine's independence and sovereignty within its internationally recognized borders.

This action further strengthens the EU's position in supporting Ukraine and condemning Russian actions, highlighting the EU's ongoing commitment to countering aggression and protecting the territorial integrity of sovereign states.

Let's delve into the key points of this decision:

Decision Context: The decision was made considering Russia's aggression against Ukraine. The European Council, in the conclusions of October 26-27, 2023, condemned the Russian war as a blatant violation of the United Nations Charter. The European Union reiterated its support for Ukraine's independence, sovereignty, and territorial integrity.

New Inclusions in Restrictive Measures: Due to the severity of the situation, the Council decided to add one individual and one entity to the list of persons, entities, and bodies subject to restrictive measures. In this specific case, PJSC Alrosa, the world's largest diamond mining company, and its CEO Pavel Alekseevich Marinychev were included.

Reasons for the Inclusions: The decision is based on the fact that Alrosa and its CEO are deemed responsible for actions compromising or threatening the territorial integrity, sovereignty, and independence of Ukraine. The strategic role of Alrosa in the Russian economy and its connection to the Russian government, responsible for actions against Ukraine, are emphasized.

Changes to the Annex of Decision 2014/145/CFSP: Decision CFSP 2024/195 amends the annex of the previous decision, including details regarding Pavel Alekseevich Marinychev and his association with PJSC Alrosa.

Entry into Force: The decision entered into force on the day of its publication in the Official Journal of the European Union.

This decision is part of a broader EU commitment to countering Russian aggression and supporting Ukraine. The restrictive measures, such as asset freezes and travel bans, aim to exert pressure on individuals and entities involved, contributing to international efforts to resolve the crisis.

It is important to note that these decisions are made in accordance with the rules and principles of international law, with the goal of promoting peace, stability, and respect for the territorial integrity of states.

According to the table provided as an annex, on January 3, 2024, a specific person and entity were indicated for restrictive measures under EU Council Decision 2024/195. Let's see the details of who has been indicated and the reasons:

Indicated Person: Name: Pavel Alekseevich MARINYCHEV Identifying Information:

Position: CEO of Alrosa Date of Birth: 25.10.1978 Place of Birth: Yakutsk, USSR (now Russian Federation) Citizenship: Russian Tax Identification Code: 143515801397 Associated Entity: PJSC Alrosa Gender: Male Reasons for Indication: Pavel Marinychev is the CEO of Alrosa, the world's largest state-owned diamond mining company operating in Russia. The diamond industry is strategic for the Russian economy, constituting the country's main non-energy export. Alrosa represents over 90% of all Russian diamond production. The decision emphasizes that Marinychev is a business figure operating in an economically significant sector for the Russian government, responsible for the annexation of Crimea and the destabilization of Ukraine. Additionally, Pavel Marinychev provides financial support to the Russian government.

Indicated Entity: Name: PJSC Alrosa Identifying Information:

The world's largest state-owned diamond mining company. Represents over 90% of all Russian diamond production. A significant source of income for the government of the Russian Federation. Reasons for Indication: Alrosa is included in restrictive measures due to its key role in the Russian economy and its significant contribution to the revenues of the Russian government. The decision aligns with broader G7 efforts to coordinate an international ban on diamonds, aimed at depriving Russia of this strategic revenue source.

These indications are part of the restrictive measures adopted by the EU to counter actions compromising or threatening the territorial integrity, sovereignty, and independence of Ukraine, as reiterated in the European Council's conclusions.

References: Council Decision (CFSP) 2024/195 of 21 December 2023 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine Russia's war of aggression against Ukraine: EU adopts 12th package of economic and individual sanctions (press release, 18 December 2023) <a href="/en/press/press-releases/2023/12/18/12th-package-of-sanctions-on-russia-s-war-of-aggression-against-ukraine-additional-61-individuals-and-86-entities-included-in-the-eu-s-sanctions-list/" title="12th package of sanctions on Russia's war of aggression against Ukraine: additional 61 individuals and 86 entities included in the EU's sanctions list (press release, 18 December 2023)" target="_new">12th package of sanctions on Russia's war of aggression against Ukraine: additional 61 individuals and 86 entities included in the EU's sanctions list (press release, 18 December 2023) G7 Leaders' Statement, 6 December 2023 European Council conclusions, 14-15 December 2023 EU's response to the Russian invasion of Ukraine (background information) Glossary CFSP: Common Foreign and Security Policy of the European Union. Represents cooperation among EU member states in foreign and security policy. European Union (EU): An economic and political organization of 27 European countries that have decided to cooperate in various sectors, including political and economic ones. EU Sanctions: Restrictive measures adopted by the European Union against a state or entity to influence its behavior, often in response to violations of international law or undesirable behavior. Russia: A country located in Eurasia, extending across Eastern Europe and Northern Asia, with a complex geopolitical history. Ukraine: A country in Eastern Europe, involved in a conflict with Russia regarding the annexation of Crimea and other territorial issues. PJSC Alrosa: Public Joint Stock Company Alrosa, the world's largest state-owned diamond mining company, located in Russia. Restrictive Measures: Actions taken to limit or influence the behavior of a state or individuals, often through economic sanctions or bans. War of Aggression: Armed conflict in which a country invades or attacks another without legitimate justification, violating international law. G7: Group of Seven major industrialized economies in the world, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Crimea: Peninsula in the Black Sea, subject to disputes between Russia and Ukraine, with Russia's annexation in 2014. Regional Stability: Condition of peace, security, and cooperation among states in a specific region. Conflict: Disagreement or clash between two or more parties that can manifest in various ways, including diplomatic, political, or military means. Diplomacy: Practice of international relations involving negotiation and maintenance of friendly relations among states. Territorial Integrity: Principle that a state has the right to maintain its territorial structure without external interference. Sovereignty: Authority and autonomy of a state to make its own political, economic, and social decisions without external interference. Decision 2024/195: Specific reference to the decision adopted by the EU Council on December 21, 2023, amending restrictive measures concerning Ukraine. EU Council: EU institution composed of representatives from member countries, responsible for making political decisions and coordinating national policies. Embargo: Trade blockage or commercial restriction imposed by one country on another. International Relations: Study of interactions among states, international organizations, and non-state actors on a global scale. Press Release: Official statement sent to the media to communicate relevant information or decisions. Geopolitics: Study of geographical influences on international relations and global politics. Russian Economy: Economic system of Russia, influenced by geopolitical factors and political decisions. Geopolitical Conflicts: Clashes and tensions between countries due to strategic and territorial interests. Fair Economy: The term "Fair Economy" or hashtag "FairEconomy" refers to an economy that promotes social justice, equity, and inclusion. In a fair economy, access to economic opportunities and benefits is distributed fairly among all members of society, reducing inequalities and providing equal conditions for economic participation. A fair economy strives to ensure that people have access to decent work, fair wages, growth opportunities, and a fair tax system. Additionally, it promotes ethical business practices, environmental sustainability, and social responsibility to contribute to overall well-being and shared prosperity.