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Alrosa Revenue Drops 25% Amid Sanctions and Inflation, Despite Profit Bump from Asset Sale

Order for lab-grown polished diamonds to be executed in 3 months; company strengthens foothold in Far East market

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Russian diamond giant Alrosa reported a 25% drop in revenue for the first half of 2025, citing geopolitical tensions, global sanctions, and macroeconomic headwinds such as high interest rates and inflation as key factors behind weakening demand and rising costs.

Revenue for the January–June period fell to 134.3 billion roubles, while core earnings (EBITDA) dropped 42% to 37.1 billion roubles, the company said on Tuesday. The state-backed miner noted that elevated borrowing costs, inflationary pressures, and higher taxes continue to erode profitability.

Alrosa, which has been under U.S. sanctions since 2022, is grappling with increasing isolation in global markets. In January 2024, G7 countries imposed a direct ban on Russian diamond imports, followed by additional restrictions on Russia-origin diamonds routed through third countries—a move also backed by the European Union.

Despite these challenges, Alrosa posted a 10.8% year-on-year rise in net profit to 40.6 billion roubles ($506.7 million) for H1 2025, buoyed largely by a one-time gain from the sale of its 41% stake in Angola’s Catoca diamond mine. The deal, finalised in May 2025, transferred Alrosa’s stake to a subsidiary of Oman’s sovereign wealth fund, amid pressure on Angola to cut ties with Russian entities due to ongoing Western sanctions.

The sale brought in 15.9 billion roubles, helping partially offset the operational downturn. Prior to the deal, Catoca was jointly owned by Alrosa and Angola’s national diamond company, Endiama EP.

Meanwhile, Alrosa’s net debt soared nearly tenfold to 61 billion roubles, although its liquidity position remained stable, with cash, equivalents, and bank deposits rising 8.4% to 115.4 billion roubles.

“The relatively high level of the key rate and inflation continued to have an additional negative impact on the group in the first half of 2025,” the company stated, highlighting rising fuel and material costs.

Russia’s central bank recently began easing monetary policy, cutting the key interest rate from 20% to 18% in late July, offering some hope for relief in the second half of the year.

Alrosa remains the world’s largest producer of rough diamonds by volume, but faces ongoing hurdles in maintaining global market access amid increasing geopolitical friction.

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DiamondBuzz

De Beers Group Launches “Heera Hai Aapke Liye” Program at IIJS Bharat Signature to Revolutionize Natural Diamond Accessibility in India

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De Beers Group, the world’s leading diamond company, marked a significant milestone in the Indian jewellery landscape with the official launch of the “Heera Hai Aapke Liye” program at IIJS Signature. The star-studded event featured actress Sonakshi Sinha, who joined Shweta Harit, Global Senior Vice President of De Beers Group and CEO of Forevermark, to unveil an initiative dedicated to making natural diamonds an integral part of daily life for the modern Indian consumer.

The “Heera Hai Aapke Liye” (Diamonds are for You) program is strategically designed to promote natural diamonds by raising awareness, boosting market visibility,and creating a seamless connection between retailers and consumers. With a focus on modern designs and attractive price points, the program also lets local retailers use De Beers Group campaigns as their own—second-piercing earrings, ‘Bestie’ bracelets, and ‘Intention’ pendants. It positions diamonds as a lifestyle choice for self-expression and daily wear.

Speaking at the launch, Shweta Harit, Global Senior Vice President of De Beers Group and CEO of Forevermark, detailed the evolution of the brand’s storytelling, stating, “De Beers Group has a rich legacy of creating iconic ritual campaigns that have shaped how the world perceives diamonds. With ‘Heera Hai Aapke Liye,’ program we are evolving that narrative for the Indian market to another level.

We are not just selling jewellery, we are making natural diamonds more accessible and desirable in India. Our goal is to empower retailers through INDRA (Indian Natural Diamond Retailer Alliance)  to ensure that every ‘First Diamond’ journey is as credible as it is beautiful.”

Kirit bhansali

Speaking on the occasion, Kirit Bhansali, Chairman, Gem & Jewellery Export Promotion Council (GJEPC), said, “IIJS has always been a powerful platform for shaping the future of India’s gem and jewellery industry, and the launch of ‘Heera Hai Aapke Liye’ at IIJS Signature reinforces that role. GJEPC is proud to partner with De Beers Group on the INDRA (Indian Natural Diamond Retailer Alliance) project, which is a critical step towards strengthening domestic demand for natural diamonds.

By empowering retailers, enhancing consumer confidence, and expanding access across metros and Tier 2 markets, this initiative aligns perfectly with our vision to grow the natural diamond category sustainably within India.”

The program ‘Heera Hai Aapke Liye’, rests on few strategic pillars aimed at industry growth and scalability:

  • Stocking & New Consumer Opportunity: Identifying gold wholesalers and distributors across 15–20 cities to focus on a first-phase target of 500 retailers.
  • Retailer Advantage: Providing a “Design Advantage” and strict “Product Hygiene,” backed by a clear buy-back policy and robust training and marketing support via the INDRA alliance.
  • Heera Hai Aapke Liye is robust entry-level product kit featuring earrings, bangles, bracelets, etc supported by exclusive visual merchandising (VM) for display.
  • Growth and Scalability: A PAN-India reach strategy designed to unlock new business opportunities for both manufacturers and retailers.

As India continues to grow as the world’s second-largest market for retail diamond jewellery, De Beers Group remains committed to strengthening the natural diamond narrative. By combining the emotional appeal of natural diamonds with the practical “Heera Hai Aapke Liye” framework, De Beers aims to build a sustainable future for the category across both metros and Tier 2 cities. De Beers and GJEPC aim to expand the base of Natural Diamond buyers, increase self-purchase consideration, and establish long-term credibility for the category.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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