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U.S. blacklists Russian shipbuilder and diamond mining company

Russia Ukraine WarU.S. blacklists Russian shipbuilder and diamond mining company

Washington (Times Of Ocean)- The U.S. Treasury Department said on Thursday it blacklisted two Russian state-owned enterprises, United Shipbuilding Corp and the Alrosa diamond mining company, preventing them from accessing the U.S. financial system over Russia’s invasion of Ukraine.
On Thursday, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced “it designated Alrosa, a Russian state-owned enterprise (SOE) and the world’s largest diamond mining company, which is also responsible for 90 percent of Russia’s diamond mining capacity. The Department of State also redesignated Joint Stock Company United Shipbuilding Corporation (USC), as well as its subsidiaries and board members. USC is a Russian SOE that develops and constructs the majority of the Russian military’s warships, likely including many of those used to bombard Ukraine’s cities and harm Ukraine’s citizens. These actions were taken pursuant to Executive Order (E.O.) 14024. Through these designations, Treasury is cutting off additional sources of support and revenue for the Government of the Russian Federation (GoR) to wage its unprovoked war against Ukraine.”
“These sanctions will continue to apply pressure to key entities that enable and fund Russia’s unprovoked war against Ukraine,” said Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. “These actions, taken with the Department of State and in coordination with our allies and partners, reflect our continued effort to restrict the Kremlin’s access to assets, resources, and sectors of the economy that are essential to supplying and financing Putin’s brutality.”
In its latest statement, the OFAC also said it has targeted the world’s largest diamond mining company Alrosa.
“Public Joint Stock Company Alrosa (Alrosa) is a Russian SOE and the world’s largest diamond mining company, accounting for 28 percent of global diamond mining. In 2021 Alrosa generated over $4.2 billion in revenue. Diamonds are one of Russia’s top ten non-energy exports by value, with exports in 2021 totaling over $4.5 billion. Alrosa is also responsible for 90 percent of Russia’s diamond mining capacity. On February 24, 2022, OFAC identified Alrosa as subject to prohibitions pursuant to Directive 3 under E.O. 14024, “Prohibitions Related to New Debt and Equity of Certain Russia-related Entities” (Russia-related Entities Directive).”
“OFAC is expanding previous sanctions by designating Alrosa pursuant to E.O. 14024 for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, the GoR. Alrosa has also been sanctioned by Canada, the United Kingdom, New Zealand, and the Bahamas. All entities owned 50 percent or more, directly or indirectly, by Alrosa are blocked under E.O. 14024, even if not separately designated or identified by OFAC.”
According to the treasury, “United Shipbuilding Corporation (USC) is a major Russian SOE responsible for developing and building the Russian Navy’s warships. USC is responsible for the construction of almost all of Russia’s warships, as well as those built for foreign customers.”
“Along with re-designating USC, the Department of State designated 28 subsidiaries and eight board members. These actions were also taken pursuant to E.O. 14024.”

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