Russian Arroosa Diamond Company privatization plan postponed

Abstract According to a report from a Russian news network on November 20, the Russian Asset Management Agency has signed an agreement with the State Assets Department of the Republic of Yakutia regarding the privatization of Alrosa, the world's largest diamond producer. Originally scheduled for 2014, the plan has been delayed until 2018. The main reason behind the postponement is that Alrosa serves as a critical source of revenue for the region. In 2012 alone, the company contributed 35% of the Republic of Yakutia’s budget, amounting to 38 billion rubles (approximately 1.18 billion U.S. dollars). The government is concerned that privatization could lead to reduced investment in local development and social programs. Additionally, the Republic of Yakutia’s repeated opposition to the sale has made it difficult for Alrosa to attract strategic investors, slowing down the process significantly. This delay highlights the complex balance between economic reform and regional financial stability in one of Russia’s most resource-rich areas.