Russian government sell Alrosa stake for $813m

Russian government sell Alrosa stake for $813m

The Russian Government has sold its 10.9% stake in state-controlled diamond company Alrosa (MCX:ALRS), the world number one diamond producer by output in carats, commencing a planned asset sell-off to cover a budget deficit.

The US$813 million deal was announced by a placement in Moscow on Monday and is the largest Russian state asset sale for nearly four years.

The funds raised will be used to bolster the country’s coffers which have been hit by the oil price slump with crude oil being Russia’s primary export.

Russia has said it would sell further stakes in other state-owned assets, including oil producers Rosneft and Bashneft, as well as shipping company Sovcomflot.

However, First Deputy Prime Minister Igor Shuvalov said the government would not be selling a 19.5% stake in Rosneft, the world’s largest listed oil company by production.