Russia starts selling diamonds to itself due to sanctions

For the first time in 15 years, the Russian authorities will start buying diamonds at the expense of the federal budget to support the state-owned Alrosa corporation, which has been subject to sanctions and embargoes by Western countries.

This was reported by Reuters and The Moscow Times.

The Russian Ministry of Finance and Alrosa, which is 34% owned by Rosmayn and another third by the government of Yakutia, have agreed to purchase diamonds from Goskhran, Reuters reports, citing a source familiar with the situation.

According to the source, the first deal to buy back the stones took place in March, and they will be regular throughout the year.

"Alrosa, which controls 95% of Russia's diamond production and more than a quarter of the world's, was placed on the EU's blocking sanctions list in January 2024 and was subject to Swiss sanctions.

At the same time, the G7 countries banned direct imports of diamonds from Russia, and in March decided to introduce a phased embargo on the supply of third-country-processed diamonds of Russian origin.

"Alrosa faced sales problems last year: the stocks of unsold diamonds on the company's balance sheet jumped 1.6 times over the year, from RUB 52 billion to RUB 84 billion in monetary terms. At the end of the year, the company reported a 15% loss in profit (RUB 85 billion), a 9% loss in revenue (RUB 322 billion), and a 3% decline in production, to 34.6 million carats," The Moscow Times writes.

At the same time, India remained the largest buyer of Russian diamonds, processing 90% of the world's diamond production. However, at the end of the year, this market also

Author - Olena Madiak, 28/03/2024