MOSCOW, October 28 (RIA Novosti) – The sale of a 16 percent stake in Russia’s state-controlled diamond miner Alrosa being floated as part of a long-delayed privatization program Monday raised $1.3 billion.
Prime Minister Dmitry Medvedev said the sale had netted the government revenues of 18 billion rubles ($565,000).
The Russian government will retain 43.9 percent of the miner as a result of the free float, while the government of Russia’s Sakha Republic will hold another 25 percent.
Senior officials have argued in favor of privatizing state companies as part of a drive to improve efficiency, and not just as an additional revenue stream.
A slowdown in the economy has caused a fall in projected government revenues and forced the Cabinet to sign off on budget cuts due to come into force next year.