Alrosa Not Changing Strategy

Moscow: The new president of ALROSA Andrei Zharkov says there is no need to change the long-term strategy previously adopted by the company. The “manual adjustment” of some of sales policy mechanisms is possible to increase efficiency during recession or rising prices.

“I don’t think it is now necessary to adjust the strategy and the long-term program of ALROSA approved by the Supervisory Board of the company. The company has taken certain decisions on strategic development and it is moving in accordance with them, “- said Zharkov to Interfax on the sidelines of the St. Petersburg International Economic Forum.

ALROSA’s strategy suggests the focus on its core diamond business and the disposal of its non-core assets and unprofitable lines of business. The strategy was adopted in late 2013 before the company’s IPO.

ALROSA’s president didn’t rule out the possibility of transformation of the diamond sales policy in accordance with that of De Beers.

“It is possible as one of the ‘manual adjustment’ elements to follow the market situation. But so far we are satisfied with our system of sales,” – said Zharkov. “Long-term contracts with our major customers are, as before, the basis of our marketing system. ‘Manual adjustment’ of some of the elements of supply is possible to maximize efficiency and get the best possible prices during recession or growth periods. We are constantly undertaking these “tactical maneuvers” from month to month.”

ALROSA management has no plans to change the development of low-margin deposits of Yakutia (Verkhne-Munskoye and Zarya), said Zharkov.