ALROSA CEO Steps Down Amid Health Concerns

Russia’s largest diamond producer, ALROSA (MCX:ALRS), announced its Chief Executive Officer Fyodor Andreev is stepping down from his position after revealing health concerns.

The decision was announced Monday at the company’s weekly management meeting.

“Andreev’s decision leaves the company and its investors in a very vulnerable position as it’s not clear yet who will be the next CEO and what will be the strategy,” George Buzhenitsa, an analyst at Deutsche Bank AG, said.

According to ALROSA, Ilya Ryashchin, a first vice-presient, will become acting CEO.

Andreev, 47, joined ALROSA in 2002, serving as First Vice-President, economics and Finance until 2003. He was appointed CEO on July 15, 2009.  

Under his management, the company went public on the Moscow Stock Exchange in October 2013. ALROSA also sold $1.3 billion shares to investors in October including Oppenheimer Funds Inc. and Lazard Ltd’s asset-management unit.

Although the resignation of Andreev is surprising, he will continue to take part in governance as a member of the Supervisory Board.

ALROSA fell 3.6 percent to 37.08 rubles amid news of the resignation in Moscow.

Earlier this month, ALROSA announced it would begin expanding its presence in Asia, targeting both India and countries with a large Indian expat population.  The company also announced its partnering a Zimbabwe-Russia joint venture company to prospect for diamonds in the southern African country.

ALROSA sold nearly $4.7 billion worth of diamonds in 2013.