Reuters quoted a source close to the deal said Russia state diamond miner Alrosa will sell its domestic oil and gas assets to VTB bank for around USD 600 million.

The source added that VTB does not plan to keep the assets in its portfolio for the long term.

The source close to the deal said "Alrosa is selling its oil and gas asset for around USD 600 million and it is close to closing the deal. VTB's participation is only part of a complex transaction. He added that the state-controlled bank's investment arm, VTB Capital, is advising Alrosa on the deal, but VTB has no intention to run an oil business.”

The source gave no indication as to who the final buyer of the assets might be.

Alrosa is struggling with losses as diamond producers across the globe have been hit by weak demand as the world economy suffers its worst financial crisis since the Great Depression and consumers tighten their belts.

(Sourced from Reuters)