The Finance Ministry has indicated that a decision will be made after reviewing second-quarter financial results. Deputy Finance Minister Alexey Moiseyev stated that the government is monitoring market conditions before determining whether the State Precious Metals and Gemstones Repository, Gokhran, will step in to buy additional stock.
Alrosa recently reported a 77% decline in profits for 2024, down to $223 million. The company has acknowledged the possibility of suspending less profitable operations and reducing its workforce of 35,000 employees in response to financial pressures.
The Russian government has previously used Gokhran to stabilize the diamond market during periods of weak demand. In 2009, amid the global financial crisis, the repository purchased $1 billion worth of Alrosa’s diamonds. More recently, in 2022, it resold millions of carats to meet post-pandemic demand surges.
In November 2024, Gokhran announced plans to sell a batch of rough diamonds, including a 390.7-carat stone, the largest recovered by Alrosa in a decade.
With market conditions still uncertain, the Russian government’s next move could be crucial in shaping the future of the country’s diamond sector.
