MOSCOW, March 6 Russia has appointed Sergey
Ivanov Jr, son of the former head of the Kremlin administration,
as chief executive of state-controlled diamond miner Alrosa, the
government said on Monday.
Ivanov's candidacy to lead the world's largest diamond
producer was supported by the finance ministry, sources familiar
with situation and the ministry have said.
The contract with Ivanov, 36, who has served as a senior
vice-president of Russia's largest lender Sberbank
since April 2016 and headed insurer SOGAZ before that, will be
for three years, a document on a government website showed.
"On the one hand, Ivanov lacks industry experience, but on
the other hand he joins from Sberbank's management team, which
is well perceived by the market," VTB Capital said in a recent
Alrosa's former chief executive Andrey Zharkov is leaving
the post ahead of schedule. Zharkov has been in dispute over
Alrosa's 2017 budget with the finance ministry, the Kommersant
newspaper has said, citing sources.
Alrosa is the world's largest producer of rough diamonds in
carat terms. Together with Anglo American's De Beers
unit, the two produce about half the world's rough diamonds.
The Russian government sold a 10.9 percent stake in Alrosa
last year, raising $813 million to plug holes in the budget as
part of a privatisation programme.
The state plans to cut its stake in Alrosa further to 25
percent plus one share by 2019, but the finance ministry has
said no sale is planned in 2017.
The federal government and the government of the Yakutia,
together with its districts - where Alrosa's main producing
assets are based in Russia's far east - currently each hold 33
percent of Alrosa's shares.
The shares were down 0.3 percent in Moscow on Monday,
compared with a 0.2 percent rise in the MICEX index.
(Reporting by Polina Devitt; Editing by Mark Potter)