The EU announced the decision on Wednesday, the Reuters news agency reported.
Josep Borrell, the European bloc's foreign policy chief, said on the X social media platform: "In line with the diamond ban we have introduced with the 12th package of sanctions, the EU today lists Alrosa, the largest diamond-mining company in the world, and its CEO."
The state-run Alrosa accounts for over 90% of Russia's diamond production and provides "substantial revenue to the government of the Russian Federation," officials in Brussels said.
The EU has now imposed sanctions on 1,950 individuals and entities "in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine."
The restrictive measures include an asset freeze, and natural persons are additionally subject to a travel ban, which prevents them from entering or transiting through EU territories.
In addition, EU citizens and companies are forbidden from making funds available to the sanctioned individuals and entities.
On December 18, the EU banned the import of Russian diamonds, as part of a 12th round of sanctions against Moscow over its invasion of Ukraine.
The measure was taken in coordination with the Group of Seven (G7) countries, which announced a similar embargo in December, the Reuters news agency reported.
Thursday is day 680 of Russia’s war on Ukraine.
Russia invaded Ukraine on February 24, 2022, launching the largest military campaign in Europe since World War II.
Source: Reuters, consilium.europa.eu