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. Last Updated: 07/27/2016

Stockholm May Hear Diamond Suit




Canadian company Archangel Diamond Corp. said Thursday it was pushing forward with its battle with a local partner over a license for its $5 billion diamond field and the dispute could go to international arbitration in the second half of the year.


"The corporation anticipates presenting its detailed statement of the case to the Stockholm Tribunal by mid-May ... [and] estimates that a hearing in front of the three arbitrators could occur in the third or fourth quarter of 2000," Archangel CEO Timothy Haddon said in a statement.


Archangel has been embroiled in a feud with partner Arkhangelskgeoldobycha since 1998 over the transfer of the license for the Verkhotina field in the Arkhangelsk region in northern Russia to their joint venture Almazny Bereg. The local side had refused to hand over the license until Archangel agreed to changes in the terms of their venture.


Haddon said Thursday the prime cause for the license-transfer delay now appeared to be a restructuring at Arkhangelskgeoldobycha under which the company is expected to become a wholly owned subsidiary of oil giant LUKoil.


"With negotiations stalled [and] takeover actions of AGD by LUKoil initiated, the corporation believes its best course of action to secure the license is to continue international arbitration and purse possible government involvement," he said.