Russia Fleeced as Alrosa Sale Leaves $313 Million on Table
- Alrosa outperforming Micex almost 10-fold since share sale
- Government resumed asset sales as deficit at widest in 6 years
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For a country that’s just scraping by, Russia may have been too generous in leaving 20 billion rubles ($313 million) on the table after its biggest asset sale in three years.
Two and a half months after President Vladimir Putin’s government resumed its most ambitious program of state-asset sales in almost a decade, hindsight shows Economy Minister Alexei Ulyukayev was probably too quick to declare the sale of a stake in the world’s largest rough-diamond producer “exceeded expectations.” Priced at 65 rubles a share in the July offering, Alrosa PJSC closed on Monday almost 38 percent higher at a record 89.99 rubles, meaning the government effectively lost out on almost 20 billion rubles.