Alrosa Reports a Loss of 9.5 Billion Rubles for the First Half of the Year

Alrosa, Russia's largest diamond mining company, ended the first half of 2026 with a net loss of 9.5 billion rubles (approximately $112.72 million), marking its first negative result since 2020. The company's revenue decreased by 33% to 90.3 billion rubles, gross profit fell threefold to 14.1 billion rubles, and EBITDA dropped by 61% to 14.3 billion rubles. The operational loss for the six-month period amounted to 6 billion rubles. Alrosa is also facing cash flow issues, with a cash gap of 16.9 billion rubles for the half-year and 33.2 billion rubles over the last 12 months. The company, which controls about 90% of diamond production in Russia, has been under Western sanctions since 2022 and reduced its output by 10% to 29.8 million carats in 2025. Further reductions of 13-16% are expected in 2026. Unsold diamond stocks have risen to 150.84 billion rubles. Alrosa attributes its results to geopolitical and macroeconomic uncertainty, as well as the strengthening of the ruble. The company has already taken steps to reduce costs, including salary cuts and suspending operations at some deposits.