russia launches diamond giant stake sale in fundraising drive
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Russia launches diamond giant stake sale in fundraising drive

Arab Today, arab today

Arab Today, arab today Russia launches diamond giant stake sale in fundraising drive

The Russian government has a 44 percent stake
Moscou - AFP

Russia has begun selling a 10.9 percent stake in the world's biggest diamond producer Alrosa as part of a privatisation drive aimed at raising much-needed funds to plug a widening budget gap.

In a statement released late Wednesday the mining giant announced it had started accepting offers for 802 million shares owned by the state. 

The company said that the government would use the proceeds from the sale on "general budgetary expenses" as Moscow looks to bolster its cash flow in the face of falling revenue caused by the drop in oil prices. 

On the basis of the company's share value on Thursday morning the stake is estimated to be worth some 54 billion rubles ($844 million, 760 million euro).

Sources cited by Russian media have said the results of the operation will be made public on Monday. 

Currently the Russian government has a 44 percent stake in the group based in the far-eastern city of Yakutia, while a further 25 percent is held by regional authorities. 

A 16 percent stake was already floated on the stock market in 2013 but the move failed to generate as much cash as the authorities hoped. 

Alrosa's shares have gone up by around 34 percent since last December on the back of an overall improvement in international diamond prices.  
Moscow decided at the end of 2015 to launch a huge programme of privatisations to try to shore up its budget after the country plunged into economic crisis over the drop in oil prices and Western sanctions over Ukraine. 

Stakes are also set to be sold off in oil producers Rosneft and Bashneft, with the state recently controversially grabbing back control of the latter.

Authorities are struggling to keep Moscow's budget deficit within three percent of GDP and the government is reportedly gearing up to announce some serious cutbacks. 

Media have reported officials are set to freeze budget spending for three years, which business daily Vedomosti estimated as essentially being equivalent to a 20 percent cut by 2019 if inflation is taken into account. 

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

russia launches diamond giant stake sale in fundraising drive russia launches diamond giant stake sale in fundraising drive

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

russia launches diamond giant stake sale in fundraising drive russia launches diamond giant stake sale in fundraising drive

 



GMT 09:16 2017 Wednesday ,13 December

Cape wearing tips

GMT 20:49 2017 Monday ,21 August

South Asia floods claim more than 750 lives

GMT 19:06 2016 Saturday ,10 December

IOF Close Al-Nabi Saleh Village's Entrance

GMT 18:01 2017 Wednesday ,22 February

Abu Sayyaf ‘likely’ behind Vietnam freighter attack

GMT 06:41 2017 Sunday ,03 December

Hamas threatens 'intifada' over US moves on Jerusalem

GMT 16:17 2017 Saturday ,21 January

BMW 7 series crosses 5,000 unit mark in 2016

GMT 12:17 2016 Wednesday ,24 February

United Technologies nixes Honeywell merger

GMT 23:37 2017 Monday ,31 July

Saudi Arabia sanctions Hezbollah member

GMT 05:45 2018 Saturday ,29 September

Abdullah bin Zayed hosts official reception in New York

GMT 04:12 2018 Friday ,12 January

Saudi-led coalition says Yemen rebels threat

GMT 11:18 2014 Monday ,22 December

Richard Ward adds to The Chelsea Collection
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday