Russia kicked out of Angola DIAMOND MINES

Blacklisted ALROSA forced to run from Angola

In another blow to Russia’s revenue and economy, the Russian diamond mining company Alrosa kicked out of Angola after 20 years of pillaging Angolan diamonds for Putin’s secret revenue stream.

A subsidiary of the sovereign wealth fund of Oman is replacing Russian sanctions-hit Alrosa in Angola's state-controlled diamond miner Catoca. Alrosa, owned 41% in Catoca. Catoctin is the world's fourth-largest deposit in terms of reserves. In 2019, the mine's reserves were estimated at 120 million carats. About 6.8 million carats of diamonds are mined annually in Catoctin.

Angola has been under pressure to cease its long-standing partnership with Russian state-controlled Alrosa, the world's largest producer of rough diamonds by volume, since 2022 when the West imposed sanctions on Alrosa for Moscow's invasion of Ukraine. The Angolan government has made a decision sell Alrosa's stake to an Omani investment fund, the Financial Times reports. Previously, the Russians' stake in Angolan mine operator Catoca was 41%. Details of the deal, such as the sale price, were not disclosed.

"Alrosa is no longer part of the partnership due to international sanctions imposed on Russia," said Angolan Minister of Natural Resources and Petroleum Diamantino Pedro Azevedo.

ALROSA's departure ended more than twenty years cooperation between Russia and Angola in the development of diamond deposits. Earlier, the Angolan side, as reported by the media, demanded that "the Russians leave immediately and without demands." Russia insisted on receiving financial compensation for investments.

The Angolan authorities have been trying to get rid of the Russian company's share in the joint venture for several months now, as the diamonds it mined have become "toxic" for sale. Endiama President Ganga Junior said that Alrosa's presence undermines the credibility of the mine developer in the international market, and many banks refuse to work with them because of such cooperation.

In January 2024, the Russian company “expressed its readiness” to leave the project, but only if compensated for its investments. However, Luanda ruled out the possibility of payments, noting that the mine is Angola's "heritage" and therefore the country owes nothing to anyone, and Alrosa must leave "immediately and without any demands."

In mid-January, Angola sent a delegation to Dubai to meet with Russian authorities in another attempt to unblock the deal. One option is for Alrosa to leave the country with a guarantee of return after sanctions are lifted in the future. However, Moscow is suspicious of such a proposal given Angola's rapprochement with the United States.

The European Union blacklisted Alrosa and its CEO Pavel Marynychev on January 3. This happened against the backdrop of the ban on imports of Russian diamonds, which was introduced as part of the 12th package of sanctions and came into effect on January 1. Alrosa has been operating in Angola since 1992.

References and sources:

https://www.miningweekly.com/article/omani-firm-replaces-sanctions-hit-alrosa-in-angolan-diamond-miner-2024-11-29

https://mind.ua/en/news/20268764-angola-expels-russia-from-one-of-the-largest-diamond-mining-projects-due-to-sanctions

https://www.ft.com/content/ec29437d-67b2-49a5-a22c-60cca7fd2544