Alrosa, Russia’s leading diamond miner, has turned to Gokhran, the state-owned gem and precious-metal repository, for financial support amid ongoing sanctions and weak global demand for Russian diamonds.
A Strategic Sale
Alrosa recently sold a parcel of rough diamonds to Gokhran, which includes a 390.7-carat rough stone discovered last year at the Ebelyakh deposit in Yakutia. While the total carat weight and value of the transaction remain undisclosed, the stones encompass various colors and sizes. Delivery of the diamonds is scheduled by year-end, according to Alrosa’s Tuesday announcement.
A History of State Assistance
This isn’t Alrosa’s first bailout from Gokhran:
- In March, reports suggest Gokhran purchased $100 million to $200 million worth of rough diamonds to stabilize the company.
- During the height of the COVID-19 pandemic in 2020, Alrosa sold $1.7 million worth of diamonds to the state fund.
- There are also indications of a 2022 transaction as sanctions intensified.
Market Challenges and Hope for Recovery
Despite the sale, Alrosa noted a recent moderate rise in diamond prices, providing a glimmer of hope for the beleaguered industry. However, the company has announced plans to cut its 2025 output and reduce staff costs by 10% as part of its cost-saving measures.
Alrosa CEO Pavel Marinychev commented, “Russian diamonds, which are valued all over the world, will replenish the main treasury of our country. The state’s decision to purchase these stones demonstrates confidence in their enduring value.”