G7 Sanctions: Alrosa to Sell Share in Catoca Mine
May 02, 24
(IDEX Online) - Alrosa is to sell the 41 per cent stake it holds in Catoca, the Angolan diamond mine.
The government of Angola has been pushing for it to withdraw unconditionally from Sociedade Mineira de Catoca, the company that operates the mine, because it is now subject to G7 sanctions. The government owns a majority 59 per cent stake.
"The Angolans believe that the presence of Alrosa as a key shareholder is preventing them from developing their business. In general, they have fair reasons for this," Russia's deputy finance minister Alexei Moiseyev told reporters, according the Interfax news agency.
"In general, they have fair reasons for this. We are already seeing that many Western companies, both suppliers and buyers of stones, are beginning to say, 'You have Alrosa as a shareholder, so we will not work with you'."
He said negotiations over a price tag for its share in the world's fourth biggest mine were taking place with "friendly investors".
Angolan officials have expressed concerns that banks and external suppliers were wary of working with it because of its Russian links.
Alrosa's stake in the mine was initially not enough to trigger the US sanctions that were imposed shortly after the invasion of Ukraine.