Latest news with #Catoca
Fashion Network
7 days ago
- Business
- Fashion Network
Russian diamond maker Alrosa flags high rates, inflation pressure as revenue falls
Russia's sanctions-hit diamond producer Alrosa reported a 25% fall in first-half revenue on Tuesday, warning that geopolitics and macroeconomic uncertainties were weighing on demand as high interest rates, inflation and taxes exert pressure on profits. Group of Seven countries banned direct imports of Russian diamonds in January 2024. This was followed by a European Union and G7 ban on imports of Russia-origin diamonds via third countries. Alrosa itself has been under US sanctions since 2022. Alrosa's full-year profits fell sharply in 2024, but the first half of 2025 showed signs of recovery, with net profit up 10.8% year-on-year to 40.6 billion roubles ($506.7 million). Revenue fell 25% to 134.3 billion roubles and core earnings (EBITDA) dropped 42% to 37.1 billion roubles, Alrosa said. Net debt jumped almost 10 times to 61 billion roubles, Alrosa's results filing showed, but the company's cash, cash equivalents and bank deposits rose 8.4% to 115.4 billion roubles. "The relatively high level of the key rate and inflation continued to have an additional negative impact on the (group) in the first half of 2025," Alrosa said, pointing to rising costs for materials and fuel. Russia's central bank has maintained elevated borrowing costs for several months, but has started an easing cycle, most recently trimming rates to 18% from 20% in late July. Alrosa's first-half profits were boosted by the sale of its stake in Angolan state-controlled diamond miner Catoca, for which Alrosa said it received 15.9 billion roubles. A subsidiary of Oman's sovereign wealth fund replaced Alrosa, the world's largest producer of rough diamonds by volume, as a shareholder in Catoca under a deal formalised in May. Angola had been under pressure to cease its long-standing partnership with Alrosa since the West imposed sanctions over Moscow's February 2022 full-scale invasion of Ukraine. Prior to the deal, Alrosa held a 41% stake in Catoca, with the remaining shares owned by Endiama EP, Angola's national diamond company. © Thomson Reuters 2025 All rights reserved.
Fashion Network
7 days ago
- Business
- Fashion Network
Russian diamond maker Alrosa flags high rates, inflation pressure as revenue falls
Russia's sanctions-hit diamond producer Alrosa reported a 25% fall in first-half revenue on Tuesday, warning that geopolitics and macroeconomic uncertainties were weighing on demand as high interest rates, inflation and taxes exert pressure on profits. Group of Seven countries banned direct imports of Russian diamonds in January 2024. This was followed by a European Union and G7 ban on imports of Russia-origin diamonds via third countries. Alrosa itself has been under US sanctions since 2022. Alrosa's full-year profits fell sharply in 2024, but the first half of 2025 showed signs of recovery, with net profit up 10.8% year-on-year to 40.6 billion roubles ($506.7 million). Revenue fell 25% to 134.3 billion roubles and core earnings (EBITDA) dropped 42% to 37.1 billion roubles, Alrosa said. Net debt jumped almost 10 times to 61 billion roubles, Alrosa's results filing showed, but the company's cash, cash equivalents and bank deposits rose 8.4% to 115.4 billion roubles. "The relatively high level of the key rate and inflation continued to have an additional negative impact on the (group) in the first half of 2025," Alrosa said, pointing to rising costs for materials and fuel. Russia's central bank has maintained elevated borrowing costs for several months, but has started an easing cycle, most recently trimming rates to 18% from 20% in late July. Alrosa's first-half profits were boosted by the sale of its stake in Angolan state-controlled diamond miner Catoca, for which Alrosa said it received 15.9 billion roubles. A subsidiary of Oman's sovereign wealth fund replaced Alrosa, the world's largest producer of rough diamonds by volume, as a shareholder in Catoca under a deal formalised in May. Angola had been under pressure to cease its long-standing partnership with Alrosa since the West imposed sanctions over Moscow's February 2022 full-scale invasion of Ukraine. Prior to the deal, Alrosa held a 41% stake in Catoca, with the remaining shares owned by Endiama EP, Angola's national diamond company.
Fashion Network
7 days ago
- Business
- Fashion Network
Russian diamond maker Alrosa flags high rates, inflation pressure as revenue falls
Russia's sanctions-hit diamond producer Alrosa reported a 25% fall in first-half revenue on Tuesday, warning that geopolitics and macroeconomic uncertainties were weighing on demand as high interest rates, inflation and taxes exert pressure on profits. Group of Seven countries banned direct imports of Russian diamonds in January 2024. This was followed by a European Union and G7 ban on imports of Russia-origin diamonds via third countries. Alrosa itself has been under US sanctions since 2022. Alrosa's full-year profits fell sharply in 2024, but the first half of 2025 showed signs of recovery, with net profit up 10.8% year-on-year to 40.6 billion roubles ($506.7 million). Revenue fell 25% to 134.3 billion roubles and core earnings (EBITDA) dropped 42% to 37.1 billion roubles, Alrosa said. Net debt jumped almost 10 times to 61 billion roubles, Alrosa's results filing showed, but the company's cash, cash equivalents and bank deposits rose 8.4% to 115.4 billion roubles. "The relatively high level of the key rate and inflation continued to have an additional negative impact on the (group) in the first half of 2025," Alrosa said, pointing to rising costs for materials and fuel. Russia's central bank has maintained elevated borrowing costs for several months, but has started an easing cycle, most recently trimming rates to 18% from 20% in late July. Alrosa's first-half profits were boosted by the sale of its stake in Angolan state-controlled diamond miner Catoca, for which Alrosa said it received 15.9 billion roubles. A subsidiary of Oman's sovereign wealth fund replaced Alrosa, the world's largest producer of rough diamonds by volume, as a shareholder in Catoca under a deal formalised in May. Angola had been under pressure to cease its long-standing partnership with Alrosa since the West imposed sanctions over Moscow's February 2022 full-scale invasion of Ukraine. Prior to the deal, Alrosa held a 41% stake in Catoca, with the remaining shares owned by Endiama EP, Angola's national diamond company.
Fashion Network
7 days ago
- Business
- Fashion Network
Russian diamond maker Alrosa flags high rates, inflation pressure as revenue falls
Home › News › Business Published August 12, 2025 Download Print Published August 12, 2025 Russia's sanctions-hit diamond producer Alrosa reported a 25% fall in first-half revenue on Tuesday, warning that geopolitics and macroeconomic uncertainties were weighing on demand as high interest rates, inflation and taxes exert pressure on profits. Alrosa is a diamond business with trade across the globe Group of Seven countries banned direct imports of Russian diamonds in January 2024. This was followed by a European Union and G7 ban on imports of Russia-origin diamonds via third countries. Alrosa itself has been under US sanctions since full-year profits fell sharply in 2024, but the first half of 2025 showed signs of recovery, with net profit up 10.8% year-on-year to 40.6 billion roubles ($506.7 million).Revenue fell 25% to 134.3 billion roubles and core earnings (EBITDA) dropped 42% to 37.1 billion roubles, Alrosa said. Net debt jumped almost 10 times to 61 billion roubles, Alrosa's results filing showed, but the company's cash, cash equivalents and bank deposits rose 8.4% to 115.4 billion roubles. "The relatively high level of the key rate and inflation continued to have an additional negative impact on the (group) in the first half of 2025," Alrosa said, pointing to rising costs for materials and central bank has maintained elevated borrowing costs for several months, but has started an easing cycle, most recently trimming rates to 18% from 20% in late first-half profits were boosted by the sale of its stake in Angolan state-controlled diamond miner Catoca, for which Alrosa said it received 15.9 billion roubles. A subsidiary of Oman's sovereign wealth fund replaced Alrosa, the world's largest producer of rough diamonds by volume, as a shareholder in Catoca under a deal formalised in had been under pressure to cease its long-standing partnership with Alrosa since the West imposed sanctions over Moscow's February 2022 full-scale invasion of Ukraine. Prior to the deal, Alrosa held a 41% stake in Catoca, with the remaining shares owned by Endiama EP, Angola's national diamond company. © Thomson Reuters 2025 All rights reserved. Tags : Luxury Jewellery Business
TimesLIVE
10-06-2025
- Business
- TimesLIVE
Omani fund replaces Russia's Alrosa in Angolan diamond miner Catoca
A subsidiary of Oman's sovereign wealth fund has replaced sanctions-hit Russian firm Alrosa as a shareholder in Angola's state-controlled diamond miner Catoca, according to the shareholder structure on Catoca's website. Angola had been under pressure to cease its long-standing partnership with the Russian state-controlled Alrosa, the world's largest producer of rough diamonds by volume, since 2022 when the West imposed sanctions on Alrosa for Moscow's role in the conflict in Ukraine. Catoca's shareholder structure showed that Endiama EP, Angola's national diamond company, owns 59% of Catoca, with Taadeen holding the remaining 41%, which used to be held by Alrosa. The Oman Investment Authority did not immediately respond to a request for comment. Alrosa confirmed that it had exited the shareholding, but provided no further details. Angola's ministry of mineral resources, oil and gas said the deal had been formalised on May 26. In November Angola said having sanctions-hit Alrosa as a shareholder in the Angolan diamond miner was affecting "Angola's credibility in the international diamond market".
