Following the approval by its Supervisory Board on 27th December 2005 ALROSA completed the acquisition of 50.4% interest in OJSC National Oil & Gas Company Sakhaneftegas on 6th February, 2006.

Sakhaneftegas is not engaged in any independent production activity and is a holding company that owns controlling stakes in a few oil & gas companies in Sakha (Yakutia), including 92.6% in OJSC Yakutgasprom and 85.5% in OJSC Lenaneftegas.

The controlling stake in Sakhaneftegas was acquired from structures close to BIN Bank. Approximately 40% of interest in Sakhaneftegas is owned by OJSC Sakhatransneftegas, 100% of which belongs to the Sakha Ministry of Property Relations, and 10% is distributed among individual minority shareholders.

ALROSA’s financial advisor in this transaction was TRUST Investment Bank.