Russia’s Republic of Sakha (Yakutia) has no intention to sell its stake in uncut diamond mining giant ALROSA, the republic’s head Yegor Borisov told PRIME. “As far as ALROSA is concerned, it remains under the government control, because there is an agreement, under which a controlling stake is held by the Russian government and the government of Yakutia. Our 25% plus one share stake is protected by law, that’s why we do not plan to privatize it. We do not plan to privatize our part. Districts are also tied to this law, 8%, that’s why it is very difficult,” he said.
In early July 2016, in the framework of a potential privatization, the government sold 10.9% in ALROSA for $926 million (52.2 billion rubles) at $1,15 per share (65 rubles). The transaction attracted a wide range of investors, including foreign ones, leading the state to reduced their share of the miner to a mere 33%. Yakutia owns 25% plus one share, 8% belongs to eight districts of the republic, and free float accounts for 34%. The government’s forecast of the privatization plan for 2017–2019 implies cutting the state stake in ALROSA to 29% plus one share with coordination of sales of shares owned by Yakutia and municipalities. As Alrosa serves as Yakutia’s largest sources of employment and tax revenue, Borisov urges municipalities to hold on to their shares.