The board of Russian diamond major Alrosa (MCX: ALRS) has suggested shareholders vote to receive no dividend for 2021 during the upcoming general meeting.
Alrosa reported a net profit of 91.32 billion rubles ($1.5 billion) in 2021, nearly triple the 32.25 billion rubles ($527.7 million) profit in 2020. Dividends for the first half of 2021 amounted to 64.7 billion rubles ($1.04 billion), topping 70% of the company’s net profit in 2021. The final dividend in 2020 amounted to 70.3 billion rubles ($1.15 billion).
However, the company is subject to stinging economic sanctions levied by the West against Russia for its war in Ukraine.
On April 7, 2022, the U.S. Treasury Department announced blocking sanctions against State-owned Alrosa, the world’s largest diamond mining company. Already subject to Directive 3, Alrosa accounts for about 28% of global diamond mining.