Alrosa, the Russian diamond mining company under international sanctions, experienced a significant decline in revenue for the quarter ending June 30. The company’s revenue fell by 34% compared to the same period last year, totaling $680 million.
The company’s gross profit nearly halved, dropping 49% to $266 million, as revealed in its latest Condensed Consolidated Interim Financial Statements.
Since January, Alrosa has faced increasingly stringent sanctions from G7 and EU nations in response to its involvement in the Ukraine conflict, which began with Russia’s invasion in February 2022.
Alrosa acknowledged that the ongoing sanctions and market volatility could impact its long-term viability, though it does not anticipate immediate problems. The company noted that geopolitical tensions related to Ukraine remain high, contributing to the unstable situation.
Despite the additional sanctions and restrictions imposed on Russian businesses, Alrosa reported that efforts by the Russian government, Central Bank, and business community have helped mitigate the broader economic impact on Russia.
The company did not reveal details about the number of carats sold, the sales locations, or the prices achieved. However, its half-yearly revenue showed a smaller decline of 4%, suggesting that the majority of the revenue loss occurred in the second quarter.
