Alrosa Profits Halved as Sanctions Bite
August 18, 24
(IDEX Online) - Alrosa, the sanctioned Russian diamond miner, saw quarterly revenue fall 34 per cent year-on-year in the three months to 30 June to $680m.
Gross profit for the period almost halved - down 49 per cent to $266m - according to the company's newly-published Condensed Consolidated Interim Financial Statements.
Alrosa has been subject to increasingly strict sanctions by the G7 and EU nations since January of this year in response to its invasion of Ukraine in February 2022 and the ongoing war.
The state-controlled miner acknowledged that "the sanctions pressure on the company and the increased volatility in the markets are the factors that may affect its ability to continue as a going concern in the future", though not in the immediate future.
"In 2023 and further during the six months of 2024, the geopolitical situation in the region remained tense as a result of the further development of the situation with Ukraine, which remains extremely unstable," it said.
"Despite the fact that additional and expanded sanctions and restrictions were subsequently imposed on the business activity of companies operating in the Russian Federation is not excluded, active measures taken by the government and the Central Bank of the Russian Federation, as well as representatives of the business community, managed to minimise the negative consequences for the Russian economy as a whole."
Alrosa did not disclose how many carats it sold, where it sold them - given the scope of the sanctions - or what prices it achieved.
However half-yearly revenue was down by a relatively modest 4 per cent, indicating that the bulk of the lost sales were during Q2.
Pic shows rough sorting, courtesy Alrosa.