Russian MinFin retaining resources for mass purchase of diamonds from Alrosa in 2026, but feasibility still not clear - dep minister

VLADIVOSTOK. Sept 2 (Interfax) - The Russian Finance Ministry is retaining 50 billion rubles from this year's budgetary allocation limit for the State Precious Metals and Gemstones Repository (Gokhran) for the mass purchase of rough diamonds from Alrosa in 2026 in order to support the mining company amid the crisis in the diamond market, Deputy Finance Minister Alexei Moiseyev told Interfax on the sidelines of the Eastern Economic Forum.

Although the ministry still prefers to use these funds to purchase gold as a more liquid asset, it is planned that the bulk of the funds will be used closer to the end of the year, and the possibility of supporting Alrosa remains.

"We still prefer to purchase gold as a far more liquid asset. But for now, we're holding [funds from the Gokhran budget limit] until the end of the year. If we see that Alrosa really does need this, and the market is such that it needs [support], then we still have that option. Much [of the Gokhran procurement funds] has yet to be spent and that's enough to support the company if needed. We have funds left, and we can make a bulk purchase at any moment," Moiseyev said.

But the feasibility of a mass purchase is still in question, as the Finance Ministry notes signs of a market recovery - in particular, the last trading session of Alrosa went very well, and there are signs of growing demand even for small stones, Moiseyev said.

"I'm not yet convinced of the need [for government support]: we've seen a cautiously positive trend over the last couple of months. If we give the market a little stability, it starts to recover immediately," Moiseyev said.

The Gokhran usually buys only unique stones, he said.

Moiseyev also said Alrosa was not currently considering suspending or mothballing any more capacity. "Following the shutdown of Verkhne-Munskoye, the Anabar placers and the curtailment as Severalmaz , only flagship assets remain, and their production costs are such that they can quite easily be sold at current prices," he said.

"The company remains hopeful of positive EBITDA," Moiseyev said.

Alrosa's EBITDA fell 61% year-on-year in H1 2026 to 14.35 billion rubles. The market is particularly weak in the segment for small stones as competition from laboratory stones is increasing.