Alrosa Skids to Loss as Weak Diamond Demand Persists

Alrosa fell into the red in the first half of 2026 as the prolonged downturn in the diamond market and continued sanctions on Russian goods took a toll.

The miner reported a loss of RUB 10.67 billion ($129.7 million) for the six months that ended June 30, it said recently. That compares with a profit of RUB 39.03 billion ($474.52 million) in the first half of 2025.

Revenue for the period fell 36% year on year to RUB 74.16 billion ($901.6 million). The company did not specify the reason for the decline. However, it cited geopolitical and macroeconomic uncertainty, sanctions, higher gold prices, changes in jewelry demand and slower demand for rough and polished stones as factors affecting the Russian diamond market.

The US and other Western counties have imposed sanctions on diamonds from the federation since it began its war in Ukraine in February 2022. Russian supply continues to make its way into the market, but Alrosa no longer provides a breakdown of sales by destination.  

The Russian government is trying to offset some of the market weakness by imposing an 8% export tax on unprocessed rough diamonds above 0.45 carats, including special-sized goods weighing more than 10.8 carats. Alrosa believes that duty, which is set to go into effect on September 1, will have a RUB 3.12 billion ($37.9 million) impact on its profit.

The company also forecast a recovery in diamond-jewelry demand, predicting levels would return to those seen in 2022 by next year. Meanwhile, it expects diamond prices to grow 2% annually.

Image: Rough diamonds. (Alrosa)