Alrosa’s revenue declined by 25 per cent on a year-on-year comparison, reaching RUB116.04 billion ($AUD2.23 billion) for the period ending 30 June.
In a statement, the company noted that “geopolitical tensions, as well as sanctions imposed by a number of countries, continue to have a negative impact.”
Western countries, including the US, have imposed sanctions on Russia’s diamond industry since the conflict in Ukraine began in February 2022.
“The results come amid a slowdown in overall demand for rough and polished diamonds due to weak retail sales in China and competition from synthetics,” writes Leah Meirovich for Rapaport News.
“Additionally, Alrosa had less rough to sell as it paused production at some mines earlier this year to save money during the downturn.
“It also pulled out of its joint ventures in Angola at the end of last year as its involvement meant the African country had trouble selling goods because of sanctions on Russia and Alrosa.
Diamond mining rival The De Beers Group recently reported a similar decline in sales.
Earlier this year, Alrosa announced the discovery of two remarkable diamonds – the Great Victory (401 carats) and the New Sun (100 carats).
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