According to a report by Kommersant, the authorities of the Russian Federation and Yakutia are set to extend the ALROSA shareholder agreement, which is to expire in 2023, for an additional five years on the same terms. “The parties, which currently own approximately 33% each of ALROSA, will be required to maintain no less than 25% plus one share of the diamond company. ALROSA's dividends are an important source of revenue for Yakutia's budget, but the company has not paid them since the first half of 2021. Analysts believe that there is a chance that dividend payments could resume this year, despite the company's unplanned growth in the Mining Resources Extraction Tax in the first quarter,” Kommersant said.
The agreement provides for automatic renewal for the next five years if the parties do not decide otherwise. The Ministry of Property and Land Relations of Yakutia announced that they support the extension of the agreement on the same terms.
ALROSA's press office stated that the effectiveness of the current shareholder agreement "is confirmed by the historical statistics of good operational results" of the company and that "ALROSA's management productively interacts with both of the largest shareholders."
Meanwhile, ALROSA has yet to announce whether it will pay final dividends for 2022.
Vladimir Malakhov, Rough&Polished
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