Russia Confirms it Will Only Sell 10.9% of ALROSA, Not 18.9%

Mining and Exploration
19/04/2016 09:58

The Government of Russia has confirmed its earlier statement that it will only privatize a 10.9% stake in ALROSA, according to a Finmarket News report published by Rough&Polished, but will not consider selling 18.9% of the diamond company's shares, said Finance Minister Anton Siluanov, who heads the supervisory board of the company. "There is no dispute - (the sale will consist of) 10.9 percent stake. The controlling stake in the company belongs to the state - the Russian Federation and Yakutia", he said. The Russian Federal Property Management Agency currently owns a 43.9% stake of ALROSA, while the Yakutia Republic owns 25% plus one share, a package it doesn't intend to sell.

The Ministry of Economic Development originally proposed the privatization of 18.9% of the shares, which is the largest federal stake in ALROSA that can be sold with Russia and Yakutia still retaining combined control of the company. The head of the Ministry of Economic Development Alexei Ulyukayev reported that in the first stage of the sale of 10.9% of ALROSA's shares can be sold, while the remaining 8% may be sold later. He specified that these two phases do not necessarily need to take place in 2016. The draft decree submitted by the Ministry to reduce the share of the Federal Property Agency in ALROSA to 25% plus one share met with the disapproval of the Ministry of Finance.