The Ministry of Finance announced that there is no need for Gokhran to purchase ALROSA products
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Deputy Minister of Finance Alexey Moiseev said in an interview with Interfax that the Ministry of Finance is not considering the option of supporting ALROSA (MOEX: ALRS) by increasing procurement funding for Gokhran. According to him, at the moment there is “no indication” that this will need to be done.
“The company has a colossal margin of safety, it has negative net debt, and with a large margin,” explained Mr. Moiseev.
He called the sanctions “a rather unpleasant story,” the development of which the department will “watch.” At the same time, according to Alexey Moiseev, the company was “preparing for sanctions.” “After all, there was no secret in this; our opponents have been talking about this for a long time,” concluded the deputy minister.
Gokhran is an institution engaged in the formation of a fund of precious metals and stones, accounting, storage, and ensuring their safety. 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 – it was proposed to buy back the company’s products in the amount of $500 million to $1.7 billion in order to restore demand in the market after the pandemic. Such measures were not required then, since the market situation improved by the fall of 2020.
On December 18, the European Union approved the 12th package of sanctions against Russia, which includes a ban on the import of non-industrial diamonds mined, processed or produced in the country from January 1. Starting March 1, the gradual introduction of restrictions on the import of Russian diamonds processed in third countries will also begin. January 3 under EU sanctions hit ALROSA and its CEO Pavel Marinychev.
Read more about the situation on the diamond market in the Kommersant article. “Girls’ Worst Friends”.
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