The US Departments of State and Treasury Thursday announced sanctions against two more Russian state-owned enterprises.
The Office of Foreign Assets Control (OFAC) designated Alrosa, the world’s largest diamond mining company, which manages 90 percent of Russia’s diamond mining capacity and accounts for nearly 30% percent of global diamond mining. Secretary of State Antony Blinken accused Alrosa of helping fund Russia’s war and atrocities in Ukraine. The OFAC also designated Joint Stock Company United Shipbuilding Corporation (USC), as well as 28 of its subsidiaries and eight members of its board of directors.
USC is a major Russian company responsible for the construction of the vast majority of Russia’s warships, including submarines, frigates and minesweepers. USC was designated “for operating or having operated in the defense and related materiel sector of the Russian Federation economy.” USC-built ships have been responsible for the bombardment of Ukrainian cities. The sanctions against USC and Alrosa were made pursuant to Executive Order 14024.
Thursday’s actions block all the assets of sanctioned entities and persons that are in the US and further prohibit transactions by US entities or persons with the sanctioned companies and individuals. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said that the sanctions were made in coordination with US allies and partners and reflect an ongoing 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.”
Secretary Blinken noted that the US and its allies “have levied the most impactful, coordinated, and wide-ranging economic restrictions in history in response to the Russian government’s war against Ukraine.” He said that the US remains committed to supporting the sovereignty and integrity of Ukraine, and stated that, “As long as the Kremlin continues its brutal assault on Ukraine and its people, we stand united with our allies and partners in imposing additional costs on Russia.”