The move is seen as a measure to support Alrosa’s financial stability amid ongoing difficulties in the global diamond market.
Deputy Finance Minister Alexei Moiseyev confirmed that discussions are underway to assist Alrosa in maintaining liquidity and avoiding the need to sell diamonds at depressed prices. "The diamond market is currently under pressure, and we are exploring ways to prevent Alrosa from having to make sales under unfavourable conditions," Moiseyev said.
The potential diamond purchases would be made through the State Precious Metals and Gemstones Repository, known as Gokhran. The government is reportedly planning to allocate part of its 2025 budget to fund these acquisitions, with a proposed spending cap of 51.5 billion rubles ($540 million USD).
Earlier this year, the Finance Ministry and Alrosa reached an agreement for the government to buy a portion of the diamonds produced in 2024, with the first batch already acquired. However, no further purchases from the 2024 production have been reported.
While Moiseyev indicated there are no concrete plans for additional purchases from Alrosa in the remainder of 2024, he left the door open for future transactions in 2025. He also hinted at the sensitive nature of the ongoing discussions, suggesting that any final decisions might not be made public.
As Russia navigates the challenges posed by fluctuating demand and market uncertainties, the government’s strategic involvement in diamond acquisitions could provide much-needed support to Alrosa while stabilizing the domestic diamond industry.
