Russian diamond mining giant Alrosa posted a significant improvement in its financial performance for FY2025, with profits rising sharply despite ongoing restrictions imposed by Group of Seven (G7) countries.
According to the company’s full-year financial report released on 27 February, Alrosa recorded net profits of RUB 36.2 billion ($468 million) in 2025, marking a strong rebound from the previous year when profits had fallen dramatically following international sanctions. In FY2024, the miner’s net income had dropped by nearly 75% to RUB 21.2 billion ($248 million).
The recovery was driven by a combination of cost-cutting initiatives, operational efficiency improvements, and strategic diversification. The company also benefited from a weaker Russian ruble and continued sales of rough diamonds to markets such as India and China after sanctions restricted access to several Western markets in March 2024.
Although annual revenue edged down slightly by 1.7% to RUB 235.1 billion ($3.04 billion), earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 26% to RUB 57.8 billion ($748 million), reflecting stronger operational margins.
During the year, Alrosa produced 29.7 million carats of rough diamonds, about 10% lower than the previous year. Sales volumes also declined to 26.2 million carats, a 20% drop, with the remaining inventory held in stock.
To strengthen its long-term position amid volatility in the diamond sector, the company has started expanding beyond diamonds. Alrosa has closed several unprofitable mining operations and moved into gold production as part of its diversification strategy.
A key step in this direction is the Degdekan Project, where the miner has invested RUB 8.3 billion ($105 million). The project is expected to produce approximately 3.3 tonnes of gold annually by 2030. The company is also studying the possibility of extracting gold from tailings at its Mirny mining complex.
Alrosa noted that the global diamond industry continues to face multiple challenges, including geopolitical tensions, economic uncertainty and shifting consumer behavior, all of which have weakened jewellery demand. As a result, inventories in the cutting and polishing sector have grown significantly.
To manage the situation, major producers have limited supply and adjusted prices in an effort to stabilize the market. However, the company expects difficult conditions to continue in the near term due to excess midstream inventories and the ongoing imbalance between supply and demand, which may keep pressure on diamond prices and restrict sales growth.
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