Yakutia sees no need to ask State Repository to support diamond miner Alrosa at present

MOSCOW. June 3 (Interfax) - The internal Russian republic of Yakutia currently sees no need to ask the State Precious Metals and Gemstones Repository or Gokhran to support diamond miner Alrosa by purchasing large volumes of its rough diamonds amid the present diamond market crisis, Aysen Nikolayev, the republic's head, told Interfax.

"Alrosa is selling diamonds, we're having no problems with sales, and we don't see any economic sense in approaching Gokhran with a view to buying them. The ruble's exchange rate is a much bigger problem for us, as for exporters," he said.

"The diamond market today isn't that bad, it is functioning," he said. Prices for large stones have been steadily rising for some time, but competition from synthetic stones has intensified for smaller gems, he said.

Regarding Alrosa's planned drop in output this year [by approximately 14% compared to 2025, to 26 million carats], Nikolayev said that "when the global market is rather tense, we shouldn't be mining diamonds that we know to be uneconomical either." He said this decision was made by the republic and the Russian government, as Alrosa shareholders. He said production could be restored to pre-crisis levels very quickly if the diamond market improves.