The figures were disclosed in a statement by the government of Russia’s Yakutia region, where the majority of Alrosa’s operations are located.

The downturn comes amid significant challenges for the global diamond industry. Alrosa recently announced plans to suspend some production in 2025 and reduce staff to mitigate the impact of persistently low global diamond prices. This follows a 2.8% production cut last year, when the company produced 34.6 million carats.

Sanctions and Market Pressures

Alrosa's difficulties are compounded by international sanctions. The ban on Russian diamond sales to G7 and EU countries has severely impacted the company’s access to key markets. Despite these obstacles, the Yakutia government revealed that Alrosa plans to increase its tax contributions to the regional budget in 2025.

“Despite the ongoing price crisis in the global diamond market and the continued sanctions pressure, the company’s financial plan for 2025 anticipates an increase in contributions to the republic’s budget,” the government statement noted.

Looking Ahead

Alrosa’s strategy for navigating the global diamond crisis will be closely watched as the company adjusts operations and seeks to stabilize its financial position. The anticipated increase in regional tax contributions highlights its continued significance to the Yakutia economy, even in turbulent times.