Alrosa’s 2024 diamond output falls by 4.6%

Reuters | December 18, 2024 | 7:50 am Top Companies Russia and Central Asia Diamond

Russian Diamonds Are Quietly Flowing Again After Sanctions Chaos

Alrosa accounts for over 90% of all Russian diamond production. (Image from Alrosa)

Russian diamond producer Alrosa’s output fell by 4.6% to 33 million carats this year, according to a statement by the government of the Yakutia region in Russia’s Far East, where most of Alrosa’s production is based.

Alrosa, the world’s largest producer of rough diamonds by volume, announced plans last month to suspend some production in 2025 and cut staff as it grapples with low global prices. Last year it cut production by 2.8% to 34.6 million carats.

For Alrosa, the global industry crisis is exacerbated by a ban on Russian diamond sales to G7 and EU countries. The regional government said that, despite the crisis, Alrosa would pay more taxes 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 statement said.

(By Anastasia Lyrchikova and Gleb Bryanski; Editing by Mark Potter)