ALROSA again Chaired by Ilya Yuzhanov

News No 3Moscow: The Supervisory Board of ALROSA is once again chaired by Ilya Yuzhanov, according to the information received from the company on Friday.

Yury Trutnev, Deputy Prime Minister of the Russian Government and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, signed the directive prescribing the state representatives sitting on the Board to vote for Ilya Yuzhanov. The representatives of the second largest shareholder, Yakutia, on the Supervisory Board voted on the matter jointly with the representatives of the Russian Federation.

Sergey Mestnikov, First Deputy Minister for Property and Land Relations in Yakutia, was re-elected to the position of the First Deputy Chairman of the Supervisory Board, while Sergey Barsukov, Department Director at the Ministry of Finance of the Russian Federation, was elected Deputy Chairman of the Supervisory Board.

The current Supervisory Board of ALROSA includes 8 representatives of the Russian Federation (the Company’s CEO Fyodor Andreev and two independent directors nominated by the State among them), 6 representatives of Yakutia (three of them are also independent) and Ivan Demyanov, Vice President of ALROSA.

Yury Trutnev, supervising ALROSA, will also have to endorse the appointment of the President of ALROSA. The contract with Fyodor Andreev, who heads the company since 2009, expired on July 14, 2014 and turned indefinite under the Russian Federation Labor Code due to being non-cancelled. In February 2014, the Supervisory Board of ALROSA recommended re-electing Fyodor Andreev for a new 5-year term, having approved his work, but according to some media reports, Yury Trutnev opposed the candidacy of Fyodor Andreev. Olga Dergunova, Head of the Federal Property Management Agency, and Yury Podturkin, Chief Federal Inspector for Yakutia, were named as new candidates to take up presidency at ALROSA.

Major stakeholders of ALROSA are the Russian Federation (43.9%) and Yakutia (25% plus one share). Eight percent of ALROSA shares belong to Yakutia’s uluses (municipalities). Large stakes in ALROSA were bought by the Lazard and Oppenheimer foundations, the Russian Direct Investment Fund and Blagosostoyanie Non-Governmental Pension Fund in the course of the IPO held last October. ALROSA’s free float is about 23%.