Alrosa Revenue Drops to $1.45 Billion in H1 2025 as Sanctions and Market Weakness Persist
Russian diamond giant Alrosa reported a 24% year-on-year drop in revenue for the first half of 2025, as the global diamond market continues to struggle and international sanctions on Russian goods remain in effect.
For the six months ending June 30, Alrosa’s revenue declined to RUB 116.04 billion (US$1.45 billion), according to the company’s financial results released last week.
While Alrosa did not attribute the downturn to any single factor, it acknowledged that “geopolitical tensions, as well as sanctions imposed by a number of countries, continue to have a negative impact.” The company further noted that the sanctions restrict access to financing from individuals and entities linked to the United States.
Sanctions from the U.S. and other Western nations have been in place since Russia’s invasion of Ukraine in February 2022, targeting both Russian diamonds and entities like Alrosa.
While some Russian rough diamonds still enter the global market through indirect channels, Alrosa no longer discloses sales by geographic destination, reflecting heightened scrutiny and limited transparency.
The revenue drop also coincides with a broader downturn in global diamond demand, driven by:
Sluggish retail sales in China, one of the world’s key diamond markets
Rising competition from lab-grown diamonds
Reduced rough diamond availability, as Alrosa temporarily suspended production at several mines earlier this year to cut costs
Adding to the pressure, Alrosa withdrew from joint ventures in Angola at the end of 2024. The company’s participation had complicated Angola’s ability to market diamonds, as buyers sought to avoid goods associated with sanctioned Russian entities.
Despite the revenue decline, Alrosa’s net profit rose 12% to RUB 39.03 billion (US$488.2 million), primarily due to aggressive cost-cutting measures.
These included the closure of certain assets and a reduction in workforce, helping the company preserve profitability amid a challenging environment.
