Alrosa’s President Nichiporuk Resigns

Alexander Nichiporuk, president of Russia's diamond miner Alrosa, is resigning. Nichiporuk's decision, “Arises from the need to fulfill tasks set before him by the company's shareholders,” the company said in a press release Friday.

The surprising announcement comes at a time when Alrosa is facing a number of important challenges, including a change in ownership and a necessary shift in marketing its rough diamonds globally.

A key task facing Nichiporuk, according to the release, is the execution of the decision made by the Russian President, Vladimir Putin, to purchase a large stake of the company from minority shareholders. This indicates that Nichiporuk still has Putin’s trust and may continue to hold a role with the company, either on its board or at a government supervisory body.

The Russian federal government currently holds a 37 percent stake of Alrosa and seeks to increase that to just over 50 percent. Other shareholders are the government of Sakha (Yakutia) with a 32 stake in the company and local Yakutian provinces hold 8 percent. Company worker unions and organizations hold the remaining 23 percent.

Starting in 2009, Alrosa will no longer sell rough diamonds to De Beers, forcing it to market their goods independently outside of the CIS.