State Repository Might Buy Alrosa's Rough

Finance and Trade
14/05/2020 07:45

Rapaport reports that the Russian precious metals and gemstones repository, the Gokhran, may buy up part of the Russian miner's diamond stockpile, for an amount that ranges anywhere between $500 million and $1.7 billion. Rough sales have dropped dramatically as a consequence of the COVID-19 pandemic, as the miner offered its clients maximum flexibility in purchasing obligations. During past crises, notably in 2009, the state repository alleviated the company in a similar way, at that time buying $1 billion worth of diamonds. An Alrosa spokesperson confirmed to Rapaport that the company is in talks with the Gokhran but the Ministry of Finance's decision is yet to be made.