Alrosa/ Kremlin Agreement: Government to Hold 50% Plus One Share

The Russian government is set to increase their stake in the state owned diamond miner Alrosa. According to the Russian Finance Minister Alexei Kudrin, Alrosa's supervisory board has agreed to a plan to increase the government's holding in the company to 50 percent plus one share.

"We briefly discussed and approved a plan to implement the protocol that was signed last November, including steps to up Russia's stake in the company to 50 percent plus one share," the minister told RIA-Novosti.

Under the new plan, the Republic of Sakha (Yakutia) will hold a 40 percent share in the company. Currently, the Russian government holds 37 percent of the company. The Yakutia State Property Management Ministry owns 32 percent, ALROSA’s employees, 23 percent, and eight uluses (districts) of Yakutia hold the remaining 8 percent.

Alrosa produces around 23 percent of the world's diamonds.