Editor’s Note
This article examines the evolving global diamond market, with a focus on the continued prominence of Alrosa. The company’s significant market share and strategic positioning are central to understanding current industry dynamics.
The world of natural rough diamonds is witnessing profound transformation as we enter 2025 and look ahead to 2026. At the heart of this shift lies Alrosa, the Russian diamond mining company famed for its foundational role in the international diamond sector. Alrosa continues to cement Russia’s position as the world’s largest diamond producer by volume, controlling an estimated 28% of global production.
Yet, what truly distinguishes Alrosa in the context of 2025 is not solely its vast reserves or technological prowess, but its strategic move to sell diamonds in rupees. This innovation is reverberating throughout the trade networks, impacting markets worldwide and triggering a realignment of global supply chains.
This analysis unpacks the most significant developments shaping the diamond mining industry now and into 2026, focusing on key trends in global supply chains, rupee-denominated transactions, Indian value chain dynamics, and sustainable mining innovations. Our in-depth analysis leverages the latest available data, technology insights, and market projections to offer a truly comprehensive perspective on the evolving landscape.
Alrosa was founded and is headquartered in Yakutia (the Sakha Republic), Russia—an area renowned for its richest diamond-bearing terrains. The company’s operations extend across the vast mining regions of Yakutia and Arkhangelsk, both critical to Russia’s mineral wealth.
Yakutia: The world’s coldest inhabited region, offering a treasure trove of kimberlite pipes and placer deposits—the backbone of Alrosa’s mineral reserves.
Arkhangelsk: Located in northwestern Russia, known for large-scale mining infrastructure and a productive pipeline for rough diamond supply.
Alrosa’s operations are not only vast but vertically integrated. The company controls exploration, advanced extraction, processing, and global sales. Its integrated approach includes the use of cutting-edge technologies for efficient and sustainable diamond recovery.
Alrosa’s Significance in the Global Diamond Supply Chain:
– Controls an estimated 28% of global diamond production by volume—making it an indispensable driver in the supply chain.
– Plays a crucial role in supplying raw diamonds to both established and emerging international markets.
– Supplies exceptional feedstock for downstream industries: jewelry manufacturing, precision tools, and cutting instruments.
Alrosa’s natural rough diamonds are celebrated for their clarity, color, and size—meeting stringent standards demanded by retailers and manufacturers in high-value sectors. Their minerals are often the starting point for the world’s most exquisite jewelry pieces.
This scale, innovation, and heritage explain why Alrosa continues to be a dominant force, cementing Russia’s position as the world’s largest producer of natural rough diamonds.
One of the most notable developments in the diamond sector of 2025 is Alrosa selling diamonds in rupees, departing from the traditionally US dollar-denominated commodity trade. This move is not an isolated maneuver but part of a broader realignment in global economic dynamics:
– Geopolitical Tensions: Recent sanctions and economic shifts have made US dollar transactions riskier for Russian entities. Alrosa, facing restrictive trade patterns, needed a reliable alternative to keep business flowing.
– Financial Innovation: Enabling diamond sales in Indian rupees creates resilience, bypasses certain sanctions, and mitigates currency risks for both buyers and sellers.
– Commodity Market Realignment: As a result, we are witnessing the international commodity trade diversify away from sole dependence on the dollar.
This strategic move by Alrosa is already having a ripple effect. In late 2024, over 15% of global rough diamond trades were transacted in rupees. In 2025, this innovation is estimated to have shifted global trade routes by 10%, underlining the impact of such currency transitions in reshaping global diamond supply chains.
How Rupee Transactions Change the Playing Field:
– Facilitates financial transactions for Indian buyers by removing the need for complex USD-INR conversions.
– Strengthens bilateral trade between Russia and India, deepening economic ties and fostering trust.
– Encourages local financing and credit facilities within India, further empowering the country’s diamond processors and polishers.
– Creates a precedent for other commodities (e.g., metals, oil) to follow similar rupee-denominated trade models in Asia.