PRESS: Russia govt insists only state-run firms bid for Sukhoi Log

MOSCOW, Aug 25 (PRIME) -- The Russian government has not supported a proposal by the antitrust authority to allow companies without state participation of 25% or more to bid at an auction for the Sukhoi Log gold deposit, business daily Kommersant reported on Thursday, citing a source with knowledge of the discussion details.

In July, the government raised the starting price for Sukhoi Log to 8.6 billion rubles from 5 billion rubles and said only state-controlled companies can participate.

“The antitrust in fact dutifully spoke about violation of competitive mechanisms during formation of conditions of the auction. The government has considered the proposals in a working mode and did not accept them,” the source said.

But an official of the Federal Antimonopoly Service said that the government “supported the majority of objections and is improving the auction procedure.”

A joint venture between Polyus and state industrial holding Rostec is deemed to be the key contender for the auction, diamond producer ALROSA is hesitant because the new asset will require strategy changes, while private companies Polymetal, Nordgold and Kinross are waiting to hear the auction participation conditions.

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