The head of Yakutia allowed the payment of dividends by ALROSA – Kommersant
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The ALROSA Group may pay dividends for the first half of 2023 if the situation on the diamond market remains stable, said the head of Yakutia, Aisen Nikolaev. Such conditions were agreed upon by the main shareholders of the company – the government of Russia and Yakutia. At the end of May, the company’s supervisory board recommended not to pay dividends for 2022.
ALROSA is the world leader in terms of production and explored diamond reserves. The group occupies 27% of the world and about 90% of the Russian diamond mining market. The main mining assets are located in Yakutia and the Arkhangelsk region. Russia owns 33% of ALROSA shares, 25% – to the authorities of Yakutia, 8% – to the administrations of eight districts of Yakutia, 33.9% – in free float. After the start of the military operation in Ukraine, ALROSA does not disclose sales data and financial performance.
“We agreed with the government of the country: if, according to the results of the first half of the year, we do not see a deterioration in the economic situation in the diamond market, then we will return to the issue of paying dividends,” Mr. Nikolaev told Interfax on the sidelines of SPIEF-2023.
Mr. Nikolaev assessed the current situation in the diamond market as “generally normal”. “And, most likely, if this continues for some time, then I expect that dividends for the first half of the year will be paid,” the head of Yakutia added.
According to Aisen Nikolaev, the authorities are closely monitoring the situation on the diamond market, including due to the strengthening of anti-Russian sanctions by the United States. “We know that the United States has done serious work to strengthen sanctions against our country, against ALROSA in particular. All in all, given the volatility that has always been inherent in the diamond market, we were apprehensive about the beginning of the year. We expected that there could be price fluctuations in the global diamond market,” he said.
In April 2022, ALROSA was included in the US sanctions list against the largest Russian state-owned enterprises. The company refused to pay final dividends for 2021 and for the first half of 2022. At the end of May this year, the supervisory board of the company recommended not pay dividends for 2022 as well. ALROSA noted that this decision will increase the stability of the group, “taking into account external factors of uncertainty.”
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