Russian diamond exports have reached their lowest point in over a decade, according to a report by the Kommersant business daily, which referenced newly published international statistics.
The diamond industry, once a fundamental part of Russia’s export economy, has faced severe challenges due to Western sanctions stemming from the conflict in Ukraine and a broader global economic downturn.
Data from the Kimberley Process, an international initiative for the certification of rough diamonds, indicates that Russia exported 30.37 million carats in 2024, marking a 6.27% decline compared to the previous year and the lowest total since at least 2015.
In terms of revenue, Russian diamond exports plummeted by 28.6% last year to $2.62 billion, as consumers turned away and prices for Russian diamonds dropped by 24% to $86.36 per carat. This price decline was significantly sharper than the global average decrease of 10.27%, which brought the average price to $105.33 per carat.
While Russia maintained an 11% share of global diamond exports by volume, its share by value decreased from 10% to 9%. The nation represented 32% of worldwide diamond production in 2024, a slight decrease from 33% the previous year, equating to 37.32 million carats.
The downturn has particularly impacted Alrosa, the largest diamond producer in the world.
After facing U.S. sanctions early in the conflict, the state-run corporation is now contending with unsold stock worth 129.9 billion rubles (approximately $1.3 billion), as noted in its 2024 financial report. This figure has surged by 50% from the year before.
Alrosa’s revenue dropped by 26% in 2024, and its net profit fell more than fourfold to 19.3 billion rubles. The company reported a net loss of 17.3 billion rubles during the latter half of the year and experienced a significant cash deficit, with its net debt tripling to nearly 108 billion rubles.
In light of these ongoing challenges, Alrosa’s CEO, Pavel Marinychev, indicated in November that the company would pause operations at some of its less profitable sites and reduce its workforce.
“We find ourselves in quite a challenging situation at the moment,” he stated, emphasizing the need for “optimization measures” throughout the company.
