Based on materials from YASIA and Rapaport.

The preliminary valuation figure for ALROSA has been about $6.4 billion or $32,000 per share, but Russia state Yakutia's President Vyacheslav Shtyrov says the figure is too high and could be over-valued by as much as $1.5 billion or more. In 2004 JSC ALROSA announced that its 100% cost $4.5 bln and nothing important happened to company to increase its cost, Mr Shtyrov said.

Russia's Rosimuschestvo (Federal Property Agency) came up with the $6+ billion figure mid-year 2005. A full valuation of ALROSA is due mid-year 2006 before Russia expands state control of the company to 50 percent plus 1 share.

Mr Shtyrov told that one way to achieve greater share is for Moscow to buy up shares in free circulation, put "them on the company's balance sheet, canceling them and then reducing charter capital." Moscow has already announced its intention to buy back up to 13 percent of employee held shares.

If the employee plan is not approved for financial reasons, Moscow could also use Kristall to buy shares in ALROSA.