ALROSA Shifts Strategy as Investment Diamond Sales Surge 40%

 

Russia’s state-backed diamond giant, ALROSA, has reported a sharp rise in demand for investment-grade diamonds, with sales increasing by 40% over the past year highlighting a growing shift toward diamonds as a tangible store of wealth.
The surge has been driven by ALROSA’s strategic focus on polishing and distributing high-quality stones directly to private investors. These include colourless diamonds above 2 carats, ranging from D to F colour and IF to VS2 clarity, as well as rare fancy-coloured diamonds. Entry prices for these investment stones typically begin at around $20,000, placing them firmly in the high-net-worth category.
Rather than relying on traditional open tenders, ALROSA is increasingly channelling its premium stones through its Diamond Exclusive programme an initiative launched in 2019 to connect rare diamonds directly with wealthy clients via Russian banking partners. This approach provides the company with greater control over pricing and distribution, while offering investors a more streamlined acquisition process.
A key incentive behind this rising demand is the exemption from Russia’s 20% VAT on investment-grade diamond purchases. This tax advantage, combined with ongoing volatility in global financial markets, has positioned diamonds as an appealing alternative asset alongside gold and other physical stores of value.
The programme has gained significant traction since 2022, when G7 sanctions disrupted Russia’s access to traditional diamond trading channels. What began as a niche offering has since evolved into a meaningful revenue stream for the miner.
Speaking in Moscow on 16 April, Sergey Takhiev, ALROSA’s Head of Corporate Finance, confirmed the increase in investment diamond sales, although specific volumes were not disclosed.
Takhiev also pointed to tightening supply dynamics supporting long-term price growth. “Diamonds over 3 carats those most suitable for investment represent just 1–2% of global production,” he noted. “A shortage in this category is already becoming evident.”
With global diamond output declining and high-quality stones becoming increasingly scarce, ALROSA is positioning investment diamonds as a rare and finite asset class one that may see continued upward price pressure in the years ahead.

Souce: DCLA