Russia Takes Another 5% Share In Alrosa

The Russian government is now the major shareholder of Alrosa, after taking control of 10,000 shares held by the Garantiya foundation. This raises their stake in the company from 32 percent to 37 percent.

According to Finance Minister Alexei Kudrin, Garantiya held the shares illegally after the government passed a resolution in 1993 taking from Garantiya the right to manage state property in Russia. He added that state property must be managed by the Property Relations Ministry, which now holds the shares.

However some claim that the reason for the transfer of shares has little to do with the resolution. Kudrin said that Garantiya managers were involved in embezzlement and the Russian news agency Interfax reports that the founders of Garantiya decided to close the fund for numerous violations and non-fulfillment of its charter.

Russia’s additional 5 percent stake, estimated to be worth anywhere from $50 million to $100 million, is expected to earn the state $1 – 2 million dollars annually in dividends.

Alrosa's other shareholders are the Yakutia Ministry for the Management of State Property (32 percent), Alrosa employees (23 percent) and eight districts of Yakutia that hold 1 percent each.