News

Advanced Search

Brexit Could Delay ALROSA Privatization

Jun 29, 2016 4:23 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
The fallout from the U.K.’s decision to leave the European Union (EU) may affect the timing of Russia’s privatization of ALROSA, according to Sberbank CIB, the bank organizing the sale of shares.

The sale of a 10.9-percent stake in the diamond miner, scheduled for July, is expected to add $934 million (RUB 60 billion) to Russia’s coffers.

“Theoretically, Brexit could impact the timing of privatization if market conditions deteriorate,” Sberbank said in a statement to Rapaport News. “So far, no changes have been introduced to the plans to conduct a deal with ALROSA in July. There is considerable demand from Russian and foreign investors.”

The result of Britain’s referendum vote to cede from the EU – dubbed ‘Brexit’ – has sent European and global markets into turmoil with global equities losing about $3.6 trillion in market value since the decision, Bloomberg reported Tuesday.

The FTSE 100 was down 2.7 percent at the time of writing since early indications of the result came in Thursday night, according to Yahoo Finance. The pound slumped to a 30-year low against the dollar and the euro has fallen more about 3 percent relative to the U.S. currency. Gold prices surged as investors sought safe havens.

Last week Russian economy minister Alexei Ulyukayev said he did not think Brexit would influence Russia's privatization program, according to a Reuters report citing Russian news agencies.

Russia's government also plans to sell part of its shares in oil companies Rosneft and Bashneft as well as VTB Bank.
Tags: Alrosa, ALROSA privatization, Brexit, mining, privatization, Rapaport News, Russia, u.k.
Similar Articles
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.