Alrosa, the state-controlled diamond miner, has reported that its diamond sales remain unscathed by sanctions in its first set of financial results published since Russia’s invasion of Ukraine in February 2022.
The company’s sales for the first half of 2023 reached RUB 188.2 billion ($1.9 billion), showing a marginal increase of 0.2% compared to RUB 187.8 billion ($1.9 billion) for the same period in 2022. Additionally, this represents a growth of 3.5% when compared to the first half of 2021. Despite this, the net profit for the first half of 2023 witnessed a decline of 35% year-on-year, amounting to RUB 55.57 billion ($562.5 million).
While more comprehensive insights into diamond sales are subject to restrictions imposed by the Government of the Russian Federation, the financial statement underscores that Alrosa’s diamond sales have remained resilient.
The United States has implemented banking restrictions and sanctions on direct imports of Russian diamonds; however, stones originating from Russia but polished elsewhere have not been subjected to sanctions. In contrast, countries such as India and Dubai have refrained from imposing restrictions on Russian diamonds.
Alrosa’s interim financial statement acknowledges the ongoing geopolitical tensions in the region due to the evolving situation with Ukraine. The statement highlights that the sanctions against Russia have resulted in unjustified economic costs in certain foreign economies, disrupting supply chains and trade flows.
As the geopolitical landscape remains fluid, Alrosa’s performance and resilience in the face of sanctions stand as noteworthy developments in the diamond industry.
