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MOSCOW, September 12. /ITAR-TASS/. Russia’s Finance Ministry, the Federal State Property Management Agency and the Audit Chamber have started a full-scope inspection at uncut diamond mining giant ALROSA, business daily Kommersant reported Friday, citing sources.
The start of the check was ordered by Russia’s President Vladimir Putin, a source familiar with the matter said. The information was confirmed by source from the presidential administration. The idea was initiated by Deputy Prime Minister Yury Trutnev. The inspection will study the company’s largest deals, including an initial public offering (IPO) held in 2013, the daily reported.
The inspection’s results will define whether the company’s President Fyodor Andreyev will keep his post, one of the sources, said refusing to disclose any further details. The 5-year term of Andreyev’s contract expired on July 14, but ALROSA has failed so far to either re-elect him or appoint a new person, as Trutnev, who is the company’s supervisor from the government, refused to sign a draft order on Andreyev’s re-election, which was supported by the Republic of Yakutia’s government.
The sources told the daily that the inspection will cover the company’s sale of Nizhne-Lenskoye unit for 7 billion rubles in 2013 and deals with oil and gas assets.
According to Trutnev, ALROSA’s IPO in 2013 was a mistake, and it negatively affected government’s interests. Moreover, the company’s sales policy led to decrease in sales on the domestic diamond market.