The IPO is needed for the Russian government, Alrosa's major shareholder, to obtain a controlling stake in the company, which accounts for 97% of Russian and 25% of global diamond output.

"In the nearest future, I mean within a year or a year and a half, we are planning an IPO," Sergei Vybornov told a Russian-Japanese business forum in Osaka.

Alrosa is 37% owned by the Russian government, the Yakutian government owns a 32% stake, the company's employees 23% and the remaining 8% is held by eight districts in Yakutia.

The Russian government is planning to increase its stake in Alrosa to 50% plus one share through an additional issue of shares, planned to be no less than 50% of the current stock, and the contribution of the former Soviet diamond producer Yakutalmaz's assets to federal ownership. (source: Novosti).

Just three days earlier it was reported that Finance Minister Alexei Kudrin, widely respected by foreign investors for his prudent stewardship of Russia's huge oil wealth, could be dropped in a reshuffle, expected on Monday, media speculated. Kudrin is board chairman of diamond miner Alrosa, which has started active negotiations to diversify its business and acquire gold and coal mining assets.

The speculation about Kudrin heightened when journalists saw him walk out of an investment exhibition in the Black Sea resort of Sochi that President Vladimir Putin was attending.

Putin has ordered his new prime minister, Viktor Zubkov, to produce a new line-up to lead Russia through parliamentary and presidential elections over the next six months. (source: Reuters)

On September 26th, Stratfor reported; "Russian President Vladimir Putin is -- at least formally and constitutionally -- in the process of leaving the Russian political scene. His second term expires in March 2008 and he is constitutionally barred from running for a third consecutive term. Elections from the rubberstamp Duma will be held in December, with two parties created by Kremlin strategists likely to win a clean sweep. The details of Putin's "transfer" of power are entirely up to him (he has been grooming First Deputy Prime Minister Sergei Ivanov as his successor). Putin's power is so absolute that Russia is only a democracy on paper. The transfer will go exactly as he orders it to, and if he chooses to stay at the helm in name or in fact, he will. 

Putin's solution will be to convince all players in Russia that the 800-pound bear is still very much in the room. In the final month of the third quarter, Putin dissolved his Cabinet, in large part because Prime Minister Mikhail Fradkov dared threaten to cause problems for Putin if Fradkov were not granted control of the banking sector. More shakeups are in the works, and the chaos created thus far foreshadows the painful falls of some of Russia's most powerful. If Putin cannot contain his "friends'" ambitions quickly and completely, his focus will be diverted, hindering his ability to pursue Russia's national self-interest while the United States is distracted. 

Raging battles include, but are not limited to, keystone companies such as Norilsk Nickel, diamond giant Alrosa and industrial giant Power Machines."

On February 13th Eurasia Daily reported; "The maneuvering around Alrosa has been seen as part of the Kremlin's drive to tighten control over the country's key commodity sectors. The Russian government currently owns a 37% stake in Alrosa, the Yakutiya Property Ministry holds 32%, and eight districts in Yakutiya have 8%. According to official information, the company's employees own 23%.

The federal authorities first raised the issue of Alrosa ownership back in 2001, when officials in Moscow indicated interest in upping its share in the diamond monopoly. Not surprisingly, Sakha authorities have been reluctant to allow Moscow's control over Alrosa. Nonetheless, the reform of Alrosa ownership started in November 2005."

It was reported that the Russian government initiated the removal of the secrecy regime from diamonds and platinoids when it sent the corresponding draft bill to the State Duma in the spring of 2003. However, this document applied only to diamonds. As the bureaucrats themselves admitted, at the time they had to resort to war ruses. Removing the stamp of secrecy from diamonds was actually a condition for Russia to assume the chairmanship of the Kimberley Process, in which the global community fights against illegal diamond sales.

"This decision has great significance for the development of the diamond market, especially for ALROSA," says Aleksandr Nichiporuk, the president of ALROSA. "The company now has the ability to provide partners with data on current production volumes and sales, which the market has been expecting for a long time. Even more significant is the provision for communicating data on raw diamond reserves in the subsoil, including by individual facility, to potential investors. It is not surprising that under these conditions, the decision to declassify diamonds was made separately from platinoids.

No doubt, Putin is reigning in control of Russian resources from diamonds to coal. Whether the "reigning in" of these resources is based upon personal or Federation interest, it would appear as though Putin is preparing for his influence to continue long after his departure in 2008.

As reported today: Alrosa, which controls a quarter  of  the world diamond market, wants to increase direct sales to world jewelry brands. "The  path  from  mine  to  jewelry  store  should  be  as short as possible.  We  believe  the  best  plan  would be to sell uncut diamonds directly  to  famous  world  brands. 

Alrosa  has  begun direct sales to Tiffany & Co and we're sure these sales will breathe new life into the jewelry industry," company head Sergei Vybornov said at a conference in Antwerp earlier this week.

Should Tiffany buy diamonds from Alrosa, which are then sold to Americans through their retail stores?

Can we consider Putin's constant "jabs" at American government (and his alignment with Iran) as a threat to the security of the United States?

Are we, in "essence" buying what could be deemed as "Conflict Diamonds" through Tiffany retail stores (which in turn) line the pockets of Alrosa and the Putin government?