Russian government plans sale of stake in Alrosa

Reports suggest that Russia is selling its stake in Alrosa, of around 10.9 percent ordinary shares. Apart from Alrosa, the government also plans to sell its shares in other companies, reports add. The move is the government’s initiative of a privatization program to improve its finances in the wake of weak oil prices, reports say. The government plans to maintain its budget deficit within 3 percent of gross domestic product, reports add.

Since the beginning of the year, Alrosa’s market capitalization has increased 23 percent. Also, Alrosa’s shares in free float will improve from 23 percent to 34 percent post the sale, according to analysts, reports say.