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Alrosa, Zarubezhneft Fail to Agree on Gas Assets, Vedomosti Says

OAO Alrosa, a Russian diamond miner, failed to reach agreement on selling natural-gas assets to state-run OAO Zarubezhneft, Vedomosti reported, citing unidentified people familiar with the matter.

Alrosa owns Geotransgaz and Urengoy Gas Co., which have combined 187 billion cubic meters of gas reserves, according to the newspaper. Alrosa said in January the assets were “non-core” and it planned to sell them to Zarubezhneft, an oil and gas producer.

The parties failed to agree on price, as Alrosa was asking for as much as $1.2 billion, Vedomosti said, adding that the diamond miner is in talks with other potential investors.

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