Russia's State Precious Metals and Gemstones Repository to purchase batch of diamonds from Alrosa by end of year
MOSCOW. Nov 26 (Interfax) - The Russian State Precious Metals and Gemstones Repository (Gokhran) is set to purchase a batch of diamonds from mining company Alrosa by the end of the year, thereby replenishing the State Fund's reserves, the company said in a press release.
The batch will include gem-quality diamonds of different color and quality, including the largest diamond mined in the country over the past 10 years: this 390-carat diamond was discovered at the Ebelyakh section of the Mayat deposit in the republic of Yakutia in September 2023.
As usual, the value of the deal was not disclosed. The company was unable to say whether this would be a major deal for a wide range of diamonds or the statutory purchase of rare gemstones for the Gokhran.
"Russian diamonds, which are held in high esteem all over the world, will replenish our country's main treasury. The Gokhran's intention to buy gems mined by Alrosa shows the government's confidence in their growing value as unusual natural diamonds with exceptional characteristics are becoming rarer by the year," the press release quoted Alrosa CEO Pavel Marinychev as saying.
The deal is taking place against the backdrop of a moderate increase in polished diamond prices in recent months, Alrosa said.
Russia as a participant in the world diamond market is ready to continue tapping Gokhran resources where necessary to support a revival of the diamond industry, Deputy Finance Minister Alexei Moiseyev has said. Russia will also adhere to the traditional principle of price over volume, he said. This approach involves limiting supply to support prices.
The federal budget for 2025-2027 allocates 154.5 billion rubles or $1.55 billion for the Gokhran to procure precious metals and gemstones.
The Finance Ministry said in March that it had signed an agreement with Alrosa to buy some diamonds mined in 2024 and had completed a transaction for a first consignment of rough diamonds. There have been no reports since then regarding Alrosa purchasing diamonds from the Gokhran.
The Gokhran bought $1 billion worth of diamonds from Alrosa during the 2008-2009 crisis, when there had been no spot diamond sales for nearly nine months. Such major deals have not been carried out since - the biggest was for $250 million in 2012.