Lukoil Sells Grib Diamond Mine to Russian Investment Group for $1.45B

Russian oil giant Lukoil sold its Grib diamond mine to the Russian investment group Otkritie Holding for $1.45 billion in cash, according to Russian media reports.

The deal should be completed in the first quarter of 2017, subject to approval by several government offices.

"Lukoil successfully developed a major diamond project from its very early stage and brought the Grib diamond mine to almost full capacity on time and within budget," said Alexander Matytsyn, Senior Vice President for Finance of LUKOIL. "Spinning-off of this non-core asset allows us to effectively monetize the significant shareholder value that we have created over the past five years.”

Dmitry Romaev, a member of Otkritie Holding’s Board of Directors, said: “The acquisition of a 100% stake in Arkhangelskgeoldobycha is a strategic investment in an attractive asset with potential for further development."

Production of rough goods at Grib, in the Arkhangelsk region several hours north of Moscow, began just over two years ago. The goods are mostly marketed in Antwerp.