The Telegraph has reported that Britain’s Prime Minister David Cameron is pushing for political sanctions against Russia due to their stance in terms of Ukraine. As well as a sanction for Russia to be banned from high-status international events such as hosting the 2018 World Cup and a ban from the Swift banking transaction system, the EU is in the talks regarding Russia’s diamond monopoly Alrosa to be banned from exporting.
Alrosa is a diamond mining giant that is vital for Russia’s economy, described in a research note from Morgan Stanley analysts as “the largest producer of diamonds globally (followed by De Beers) and the second largest in terms of sales.” The company’s relations with Europe is an integral part of its exporting process, as Alrosa’s export market is in Belgium for the most part. A ban could have the potential to significantly impact global diamond prices, according to the Morgan Stanley report.
“The existing sanctions have not yet changed Russian behaviour and we need to be more imaginative,” a European Union official told The Telegraph. “We need to have tougher sanctions with new economic measures.” CJ
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