LUKOIL, Archangel and De Beers Settle Verkhotina Dispute

LUKOIL, Archangel Diamond Corporation and De Beers have signed an agreements Tuesday, settling their dispute over the ownership and development of the Verkhotina diamond project located in the northwest of Arkhangelsk, Russia.

In a joint statement, they said the agreement involves the acquisition of a stake in Arkhangelskoe Geologodobychnoe Predpriyatie (AGD) by Archangel. AGD is a Russian open joint stock company currently wholly-owned by LUKOIL and the holder of the license to explore and mine the Verkhotina license area.

Archangel’s stake in AGD will not exceed 49.99 percent, and LUKOIL will continue to own the remaining interest in AGD.

Completion of the transaction is subject to the consent of the Federal Anti-Monopoly Service of the Russian Federation and some other conditions.

Once completed, the litigation and arbitration proceedings relating to the ownership of the Verkhotina license will be terminated. The sides said.

The agreement was signed by Vagit Alekperov, President of LUKOIL, Nicky Oppenheimer, Chairman of De Beers, Gareth Penny, Managing Director of De Beers, Bruce Cleaver, Chairman of Archangel and Tom Beardmore-Gray, Director of Archangel.