(IDEX Online) - The government of Russia's Yakutia region, a major shareholder in Alrosa, has proposed that the Russian precious metals and gems repository Gokhran buy $0.5-$1 billion of the firm's rough diamonds this year, reports Reuters.
The proposal was apparently made to President Vladimir Putin and Russia's finance ministry, according to Aysen Nikolaev, the head of Yakutia region, reported Interfax. Yakutia holds a 33-percent stake in Alrosa.
Alorsa told Reuters that a sale would only be undertaken if the market situation deteriorates significantly. "Based on the results of the Christmas retail season, we see signs of a revival of demand in the main market and a decrease in midstream stocks," Alrosa added.
This is not the first time such a solution has been mooted. Following the global downturn in 2008-2009, Gokhran bought $1billion worth of diamonds from Alrosa.
Reuters reports that the Yakutia region, the management of Alrosa and the finance ministry have agreed to review the proposal after the mining company reports its first-half sales.