Alrosa’s sales and earnings declined in the first half of this year, reflecting a slowdown in the global market against the backdrop of ongoing Russian-diamond sanctions.

Revenue fell 5% year on year to RUB 179.47 billion ($2.01 billion) for the six months, the Russian diamond miner reported Monday. Net profit slid 34% to RUB 36.63 billion ($411.4 million). 

Alrosa did not specify a reason for the decline. However, “sanctions pressure on the company and the increased volatility in the markets” are a challenge, it said. 

The US and other Western countries have imposed sanctions on Russian diamonds since the Kremlin’s war in Ukraine began in February 2022. Russian rough has continued to flow into the market, but Alrosa, its main miner, no longer provides a breakdown of sales by destination. 

The results also come amid a slowdown in overall demand for rough and polished diamonds due to weak retail sales in China and competition from synthetics. Still, Alrosa’s sales drop for the half year was less severe than that of De Beers and Rio Tinto. 

For the second quarter of 2024, Alrosa’s revenue slipped 34% year on year to RUB 60.79 billion ($677.4 million), with net profit slumping 73% to RUB 7.3 billion ($81.7 million). 

Image: Rough diamonds. (Alrosa)