RIA Novosti quoted business daily Vedomosti reported that Russia's largest diamond producer Alrosa plans to sell two oil and gas assets in Western Siberia worth USD 400 million to USD 700 million.

According to the paper, the Geotransgaz and Urengoi Gas Company have total reserves worth USD 1 billion in oil equivalent. Prospective buyers for the oil and gas assets are yet unknown, but Gazprom is not believed to be among the list of bidders.

Vedomosti said Alrosa and J.P Morgan which is assisting the diamond producer in the search for buyers have declined to comment on this information.

Analysts say companies like Russian independent gas producer Itera and Novatek that have the possibility of transporting natural gas via Gazprom's network of pipelines may be interested in the purchase.

Alrosa, which accounts for 97% of Russian and 25% of global diamond output, produced diamonds worth USD 2.37 billion in 2007.