Alrosa, Angola in Talks Over Stake in Catoca Mine Amid Sanctions

MOSCOW (Sputnik) - Russian state-owned diamond miner Alrosa and Angolan officials are discussing the company's participation in the world's fourth-largest diamond mine, Catoca, in light of sanctions, Russian Deputy Finance Minister Alexey Moiseev said on Thursday.

In January, Angolan media reported that the authorities proposed that Alrosa exit the joint venture that owns Catoca citing problems with selling the produced diamonds due to international sanctions. The Russian side pointed to years worth of investment poured into the project, which Angola refuses to compensate.

"We do have certain problematic matters in relations with the government of the Republic of Angola, but they are now in completely negotiating context. Negotiations are going on quite actively on how best to resolve these issues," Moiseev told reporters.

Angola is concerned about "ensuring the progressive growth of local assets," which is currently complicated by sanctions slapped on the Russian miner, the deputy minister said.

He refused to predict what steps would be taken in the matter as "the negotiation process is ongoing."

Angola is one of the largest diamond producers in Africa. Catoca's owners include Angolan state diamond company Endiama and Alrosa with a 41% stake each and China's Lev Leviev International with 18%. Catoca is Angola's top diamond producer, responsible for 75% of national output.

Alrosa is the largest diamond-mining company worldwide and has been sanctioned by the United States, and more recently by the European Union over Russia's military operation in Ukraine.