"Yakutalmaz's property is preliminarily assessed at $1.5-2 billion," Alrosa President Alexander Nichiporuk said, adding that when Yakutalmaz property was transferred to Alrosa's authorized capital, the value of Alrosa's assets might grow from $6.4 billion to $8.4 billion.
Alrosa is 37% owned by the Russian government, the Yakutian government owns a 32% stake, the company's personnel has 23% and the remaining 8% is held by Yakutia's eight districts.
The Russian government is planning to increase its stake in Alrosa to a controlling interest through an additional issue of shares and the contribution of Yakutalmaz property to federal ownership. However, the enterprise belongs to the Yakut government, while Alrosa leases its property for 10 billion rubles (about $350 million) annually.
In early November, the Russian Finance Ministry, the Ministry of Economic Development and Trade and the Yakut government came to terms on the transfer of Yakutalmaz assets to federal ownership.
Russia agreed to this compromise because the full inclusion of the Yakutalmaz property would deprive Yakutalmaz of the right to raise Alrosa's rent, or more than 60% of the republic's budget revenues. Russia is prepared to compensate Yakutia for "all the budget revenues it may lose".
