Russian diamond giant Alrosa has announced plans to cut production in 2025 and reduce labor costs by 10% amid weak global demand and the impact of international sanctions, according to CEO Pavel Marinychev.
A Crisis in the Diamond Market
The global diamond industry is experiencing a “deep crisis,” with prices declining for the second consecutive year, Marinychev said in an interview on Yakutia television. He assured that Alrosa is poised to “resume production immediately after the markets recover,” but warned that less profitable areas of operation may face suspension during this downturn.
“Our task is to endure this period and wait for prices to rise again,” Marinychev emphasized.
Russian Government Steps In
To stabilize the market, Gokhran, Russia’s state-owned gem repository, has committed to purchasing a portion of Alrosa’s rough diamond output. Deputy Finance Minister Alexey Moiseev stated that the federal budget for 2025–2027 includes RUB 154.5 billion ($1.55 billion) to support the diamond and precious metals industry.
Moiseev also used the opportunity to denounce recent discussions on Russian sanctions at the Kimberley Process (KP) plenary, criticizing proposals for centralized diamond certification in Antwerp. He described such initiatives as attempts to undermine the Kimberley Process Certification Scheme and the global diamond trade.
What’s Next?
With industry challenges mounting, Alrosa’s strategy to reduce output and labor costs reflects the broader struggle within the diamond sector. The question remains whether these measures will be enough to weather the current crisis and pave the way for recovery.