ALROSA and the Ministry of Finance entered into an agreement on the purchase of diamonds in 2024 – Kommersant

ALROSA Group (MOEX: ALRS) and the Ministry of Finance entered into an agreement on the purchase by Gokhran of part of the produced rough diamonds in 2024, reports Interfax with reference to two sources. The amount of the transaction is not specified in the agency’s material. In January 2024, Deputy Minister of Finance Alexey Moiseev saidthat the Ministry of Finance is not considering the option of supporting ALROSA by increasing funding for purchases for Gokhran.

According to Interfax, as part of this agreement, Gokhran purchased the first batch of diamonds from ALROSA in March 2024, including the entire production cut. It is expected that such transactions will take place regularly throughout the current year. Gokhran, an institution involved in the formation of a fund of precious metals and stones, operates within the budget limit, which for 2024 is 51.5 billion rubles.

In 2009, Gokhran bought diamonds worth $1 billion from ALROSA as part of anti-crisis measures. In 2020, the Russian government considered the same algorithm to restore market demand after the pandemic. But measures were not required, since the market situation improved by the fall of 2020.

ALROSA is the world leader in terms of production and proven diamond reserves. The group occupies 26% of the global and about 95% of the Russian diamond mining market. The main mining assets are located in Yakutia and the Arkhangelsk region. In 2023 ALROSA got it 34.6 million carats of diamonds, which is 3% less than in 2022 (35.6 million carats).

Milena Kostereva