Russia’s state-owned diamond monopoly Alrosa will float 14 percent of its shares on the local MICEX-RTS stock exchange this year, Economic Development Ministry head of property relations Alexei Uvarov said on Friday.
“The privatization of 14 percent of Alrosa’s shares will be this year. We are going to sell them on the MICEX, and a special adviser will determine the privatization timeline,” Uvarov said on the sidelines of the St. Petersburg International Economic Forum.
The Russian government plans to sell nearly 90 percent in the diamond company and use the funds raised to develop the Yakutia republic in Eastern Siberia where Alrosa is based, First Deputy Prime Minister Igor Shuvalov said on June 7.
The Yakutia parliament asked the federal government not to sell controlling stake in Alrosa following his statement.
In 2010 Alrosa planned to hold an initial public offering in 2012, to float 20-25 percent of the company but the deal was postponed due to the improving state of affairs on the international diamond market.
The company, which produces about 30 percent of global raw diamond output, expects sales of $5.1 billion and production of 34.6 million carats in 2012.