Alrosa PJSC, Russia’s leading diamond miner and exporter, is at the center of a significant policy shift as the Russian government prepares to impose export duties on certain diamonds. This move aims to protect the domestic diamond-cutting sector, according to a statement from a deputy finance minister. The proposed tariff framework is currently under discussion with Alrosa, which has been navigating a challenging industry landscape marked by a prolonged downturn and U.S. sanctions since 2022.
The export duties are specifically targeted at diamonds that are cost-effective to cut within Russia. This strategic focus underscores the government’s intent to bolster the local diamond-processing industry by retaining these stones domestically. Notably, the state repository has indicated that it will not purchase diamonds from Alrosa under the current conditions, highlighting a shift in the government’s approach to managing its diamond resources.
Alrosa has already responded to the industry’s challenges by reducing its production by approximately ten percent in 2025. The company anticipates further production cuts in the coming year, reflecting its adaptation to the evolving market dynamics. Despite these reductions, the deputy finance minister has described the market conditions as stabilizing, suggesting a potential easing of the pressures faced by the industry.
Financially, Alrosa PJSC is listed on the Moscow Stock Exchange, with its shares priced at 27.72 RUB as of May 18, 2026. The company’s market capitalization stands at 197,050,000,000 RUB. Over the past year, the stock has experienced fluctuations, reaching a 52-week high of 49.53 RUB on August 11, 2025, and a low of 26.81 RUB on April 29, 2026. The price-to-earnings ratio is currently 5.44, reflecting investor sentiment and market valuation.
As Alrosa navigates these regulatory changes and market conditions, the company’s strategic adjustments and the government’s protective measures will likely play a crucial role in shaping the future of Russia’s diamond industry.
