Alrosa could Offload Rough to State as Revenue Plunges
May 08, 25
(IDEX Online) - Russia's finance ministry could buy more of Alrosa's excess rough production, after the sanctioned miner reported a 42 per cent slump in Q1 revenue.
"We're considering various options to support the company that have also been used in previous difficult situation in terms of selling rough diamonds on world markets," finance minister Anton Siluanov said yesterday (7 May) according to a report by Interfax, the independent news agency.
Alrosa, the state-controlled miner reported sales of just $709m for the three months to 31 March as G7 sanctions bite, demand for lab growns soars and natural prices keep on falling.
For context, Alrosa sold $1.15bn of rough in the first three months of 2021, the last full Q1 before Russian troops invaded Ukraine.
The finance ministry is reported to be considering buying up Alrosa's stockpiles for Gokhran, state repository, as it has done previously in times of poor demand.
"We're buying gold for Gokhran and along with this metal we're prepared to consider buying rough diamonds," Siluanov (pictured) said.
"In our view, rough diamonds are an asset that is sought after and will be liquid as an asset that can be put away as government reserves in Gokhran."