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. Last Updated: 07/27/2016

Gem Field Dispute




MOSCOW -- Canada's Archangel Diamond Corp., caught in a license dispute with Russian partner Arkhangelskgeoldobycha over a $5 billion gem field, said Thursday that it has fully submitted its case to the Arbitration Tribunal in Stockholm.


"It is apparent that Arkhangelskgeoldobycha is continuing to resist the license transfer and, thus, we are left with no choice but to take this formal action to protect our shareholders interests," Archangel Diamond president Timothy Haddon said in a statement.


Arkhangelskgeoldobycha, believed to be controlled by LUKoil affiliate V.A. Invest, wants to modify the joint venture's charter to give it more seats on the board of directors before it hands over the license to the Verkhotina field in the northern Arkhangelsk region.


Archangel Diamond said it would be left $500 million in the red if the dispute was not rectified. The company had said in October 1999 that it had sunk $18 million into the project and intended to invest up to another $30 million.