Alrosa Profits up 88% Despite G7 Sanctions

(IDEX Online) - Alrosa reported an 88% jump in its FY2025 profits, as it cut costs, improved efficiency, diversified into gold and benefited from a weaker ruble.

Russia's state-controlled miner has been selling rough to India, China and elsewhere since the G7 nations imposed full sanctions in March 2024.

Net profit for FY2024 plunged by 75% as a result of the sanctions, down to RUB 21.2bn ($248m).

But it rebounded last year, up to RUB 36.2bn ($468m), according to the company's full-year 2025 financial disclosure, dated 27 February.

Revenue slipped by 1.7% year-on-year to RUB 235.1bn ($3.04bn), but earnings (EBITDA) were up 26% to RUB 57.8bn ($748m).

The company produced 29.7m carats, a 10% drop from the previous year, sold 26.2m carats, a 20% drop from the previous year, and stockpiled the remainder.

The surge in profits came as Alrosa shuttered unprofitable diamond mines and diversified into gold as a strategic buffer against diamond market volatility and sanctions.

It invested RUB 8.3bn ($105m) in the Degdekan Project, projected to yield 3.3 tonnes of gold annually by 2030, and is exploring the potential for gold extraction from tailings at its Mirny mine.

"In 2025, the diamond industry continued to be pressured by several factors, including geopolitical and macroeconomic uncertainty and changing consumer preferences, which led to a decline in jewelry demand and an increase in diamond inventory in the cutting and polishing sector," the company said.

"To stabilize the market, major diamond producers continued to limit supply and reduce prices. This strategy partially stabilized the negative diamond price dynamics.

"In the short term, the challenging market situation will persist: excess inventory in the midstream, as well as the ongoing imbalance between supply and demand, will continue to put pressure on prices and limit the potential for increased sales volume for the group."

Pic courtesy Alrosa shows rough sorting.