Alrosa today announced that it remains committed to maintaining a healthy balance in the market, as the industry encounters rough supply shortages and demand continues to thrive. The company purchases 70% of the diamonds that were auctioned by the Russian State Fund for Precious Metals and Stones (Gokhran), organized to contribute to market balance. Alrosa gave a welcome opportunity to its Alrosa Alliance customers to purchase the Gokhran diamonds they needed, alleviating the pressure caused by shortages in their manufacturing cycles.
According to an opinion piece by Rough&Polished's Sergey Goryainov, the Russian State Repository may be in the process of buying US$ 1 billion worth of (rough) diamonds from Alrosa, the Russian mining giant, to alleviate the pressure on the company as the industry suffers from the COVID-19 pandemic. The author believes that what he describes as a "bailout" for both the industry and Alrosa by the Gokhran is inevitable and necessary move.
Alrosa, the Russian mining giant says it is close to finalizing a deal in which the Gokhran, the Russian State Repository will buy a significant volume, ranging between US$500 million and US$1 billion, worth of diamonds. “It’s a question of state-government support to our company,” Evgeny Augurev, Alrosa's Vice CEO commented, “And not only to our company, but to the whole industry.”
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.
The government of Russia’s Yakutia region, a major shareholder in diamond producer Alrosa, has proposed that precious metals and gems repository Gokhran buy $0.5-$1 billion of the firm’s rough diamonds in the event of diminished demand, Interfax news agency reported. Based on reporting from Reuters, the proposal was made to President Vladimir Putin and Russia’s finance ministry, which is responsible for Gokhran within the government, Interfax quoted Aysen Nikolaev, the head of Yakutia region, as saying.
ALROSA’s new President Sergey Ivanov led a senior delegation from the Russian diamond miner to Antwerp today to get acquainted with their partners at the Antwerp World Diamond Centre.
Russia’s repository treasury Gokhran will buy diamonds worth $76.68 million (5 billion rubles) in order to replenish the state fund of precious metals and precious stones in 2016, Deputy Finance Minister Alexei Moiseyev told reporters Friday. “Gokhran will buy diamonds worth 5 billion rubles. The combined limit of the state fund’s formation (envisaged by the 2016 budget) is 12 billion rubles, but 7 billion rubles are reserved for now,” he said. The government planned to spend the 7 billion rubles on purchases of gold and other precious metals.
Russia’s Finance Ministry plans to hold an open auction at the State Treasury Gokhran to sell special diamonds weighing over 10.8 carats to domestic companies on April 14, the Gokhran said Thursday in a statement on its website. Bids for the auction will be collected until March 11, and a company may file only one bid. A participant also has to make a 60,000-ruble ($787) down payment. The diamonds on sale will be displayed until April 4.