Privately-owned Russian oil company LUKoil will enter the diamond mining business this summer, the company's CEO said.
LUKoil chief Vagit Alekperov told journalists on the sidelines of the St. Petersburg International Economic Forum Friday that his company would open a diamond mine in Russia's Arkhangelsk region in June, with the hopes of delivering its first diamonds to the market in August or September, Interfax reported.
Having invested $1 billion in the mine, Alekperov said LUKoil was willing to sell it to Alrosa — Russia's largest diamond producer.
Alrosa has expressed interest in buying the LUKoil mine, which has total diamond reserves of 98.5 million karats valued at $11 billion, Interfax said, and a payback period on investment of 7 to 8 years.
"I have always stressed that [diamond mining] is not our core business," Alekperov said. "We are ready to consider a purchase proposal from Alrosa."
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.