Gokhran, Moscow's Hidden Treasure

Whether the sanctions on Russian diamonds will affect the country's finances will take time to test. But there is an important factor that needs to be understood: Russia can also pay for war related expenses by using the assets of the National Precious Metals and Gem Vault (Gokhran). Gokhran is also one of Russia's sources of finance, containing huge diamond reserves. Its origin can be traced back to 1719, established under the orders of Tsar Peter the Great. Over time, the functions of Gokhran, which was then named the "Diamond House," were expanded and eventually formed the present-day Russian National Precious Metals and Gemstones Vault.

Since the diamond mining in Siberia in the 1950s, gemstones have entered Gokhran's reserve list. Since 1996, it has been under the control of the Russian Ministry of Finance, responsible for representing the country in the purchase, storage, sale, and use of precious metals, gemstones, jewelry, and minerals. The quantity and quality of the stored diamonds are unknown, but it is certain that Russia can gain huge economic benefits from selling its reserve diamonds. In addition, Gokhran will also purchase diamonds from Russian diamond producer Alrosa and regularly organize gemstone auctions: the most recent auction was on February 24th and 25th, the same day that the Russian military launched a special military operation into the Ukrainian border.