The Ministry of Finance confirmed the purchase of diamonds by Gokhran ALROSA – Kommersant

The Russian Ministry of Finance, as well as reported Kommersant, for the first time since 2012, purchased diamonds from the ALROSA group (MOEX: ALRS) to Gokhran. The department noted that purchases will now be carried out on a regular basis. At the same time, the Ministry of Finance did not disclose the amounts and volumes due to the sanctions in force against ALROSA.

“A preliminary agreement on the possibility of a buyout was reached in December, the first purchase was carried out in March. Specific amounts and volumes will not be announced due to the sanctions restrictions in force against ALROSA,” the Ministry of Finance said in a statement, which cites Interfax.

The department noted that further purchases of ALROSA diamonds will be carried out on a regular basis. The possibility of increasing acquisition limits is also being considered. “The diamonds purchased by Gokhran are planned to be sold; the specific timing will depend on the current market conditions,” the Ministry of Finance noted.

Gokhran is an institution engaged in the formation of a fund of precious metals and stones. It operates within the budget limit, which for 2024 is 51.5 billion rubles. The last diamond purchases by Gokhran were made in 2012. In 2020, the Ministry of Finance also considered the possibility of buying back diamonds amid the coronavirus pandemic and the suspension of ALROSA sales. But the measure was not required, since the market situation improved by the fall of 2020.

Read more in the Kommersant article. “Diamonds were called into reserve”.