Angola forces the Russian multinational Alrosa to withdraw from the joint venture Sociedade de Catoca, which in particular owns the fourth largest diamond mine in the world.
This is due to the sanctions introduced against Russia for its invasion of Ukraine, which harm the trade in Angolan diamonds, reports a local publication EXPANSÃO.
As noted, last week representatives of the Angolan authorities met with their Russian colleagues in Dubai (UAE) in order to resolve the issue of the exit of the Russian shareholder "Alros" from "Sociedade Mineira de Catoca".
The situation is having a negative impact on Catoca, which is the fourth largest diamond mine in the world. Diamond production at the mine has declined, and many suppliers and banks refuse to work with Catoca because of its ties to the Russians.
Russians own 41% of the company. The Angolan side demands that the Russians leave the business without conditions, instead the Russians want compensation for the investments.
One possible solution is for Alrosa to leave now, but with the guarantee that it can return in the future when sanctions are lifted. However, given Angola's recent rapprochement with the US, the Russians are suspicious of such an outcome.
Another option is that the Russians will sell their share of shares to the Angolan company. However, it is not yet clear whether they will be ready to do so. Currently, the situation remains uncertain. The Russians' exit from the diamond joint venture is necessary to lift sanctions on the mine, but that could be a difficult task.
We will remind, on December 18, 2023, the European Union adopted the 12th package of sanctions against Russia, which is aimed at limiting its military potential and economic opportunities. In particular, the new package of sanctions included a ban on Russian diamonds.
On January 3, the Council of the European Union introduced additional restrictive measures against the Russian company "Alrosa" and its general director, Pavlo Marynychev.
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