Russian Diamond Exports Plummet: Sanctions and Market Decline Drive Setback to Historic Lows

Russia’s diamond exports have plummeted to their lowest level in over ten years, as reported by the Kommersant business daily on Tuesday, referencing newly released international statistics.

Traditionally a key component of the country’s export economy, the Russian diamond industry has faced severe challenges due to Western sanctions related to the conflict in Ukraine and a broader global economic decline.

Data from the Kimberley Process, a worldwide certification initiative for uncut diamonds, reveals that Russia exported 30.37 million carats in 2024—a 6.27% decrease from the previous year, marking the lowest volume since at least 2015.

In monetary terms, Russian diamond exports saw a dramatic drop of 28.6% last year, totaling $2.62 billion as buyers withdrew from the market. Additionally, the prices for Russian diamonds fell by 24% to $86.36 per carat, surpassing the global average price decline of 10.27%, which was $105.33 per carat.

Russia maintained an 11% share of global diamond exports by volume, while its share in terms of value decreased from 10% to 9%. The country was responsible for 32% of the world’s diamond production in 2024, compared to 33% the year before, equating to 37.32 million carats.

The situation has significantly impacted Alrosa, the world’s leading diamond producer and a state-owned enterprise.

After being sanctioned by the U.S. early in the conflict, Alrosa is now dealing with unsold stock valued at 129.9 billion rubles (nearly $1.3 billion), as indicated in its 2024 financial report—representing a 50% rise compared to the prior year.

Alrosa’s revenue fell by 26% in 2024, and its net profit plummeted by more than four times to 19.3 billion rubles. The company registered a net loss of 17.3 billion rubles in the latter half of the year, resulting in a considerable cash shortfall. Its net debt has tripled, reaching almost 108 billion rubles.

In light of these mounting difficulties, Alrosa’s CEO, Pavel Marinychev, mentioned in November that the company would halt operations at some of its least profitable sites and implement job cuts.

“We are definitely facing a challenging situation at this moment,” he stated, emphasizing the necessity for “optimization measures” throughout the organization.