Gokhran to Spend Half Budget on Alrosa Diamonds
June 23, 25
(IDEX Online) - Russia's Gokhran, the state repository of precious metals and gemstones, is expected to spend half its budget this year buying up stockpiled diamonds produced by the sanctioned miner Alrosa.
It was only three months ago that Aysen Nikolayev, head of Yakutia, the Russian republic where most diamond mining takes place, said sales to Gokhran would be a last resort.
However, Russia's deputy finance minister Alexei Moiseyev (pictured) said (on 19 June): "About half of the total amount of Gokhran purchases this year, as provided for in the budget, [will be spent on purchasing] diamonds," according to a report by the independent Interfax news agency.
It said the federal budget for 2025-2027 allocated up to RUB 154.5bn ($1.55bn) for Gokhran's to buy precious metals and gemstones.
Gokhran has historically functioned as a buffer, stockpiling diamonds during market downturns and selling them back when demand recovers, for example, during the 2009 financial crisis.
The government's approach is to limit diamond supply to support prices, adhering to the principle of "price over volume".
The Russian finance ministry indicated previously that Gokhran would decide on further purchases from Alrosa after evaluating market conditions at the end of the second quarter of 2025.