MOSCOW(BullionStreet): Russia said it will go ahead with the plan to sell 14 percent stake in Alrosa on the Moscow Exchange.

Russian federal government's Federal State Property Management Agency holds a 51% stake in Alrosa while Yakutia government holds 32 percent. Yakutia's municipalities, holding an 8% stake, and other individuals and legal entities.

Free float accounts for about 10%. The government initially planned to sell 7% of the federal government’s stake and a 7% stake of Yakutia this year.

The federal government wanted to sell its entire stake by 2016, but Yakutia has asked it to maintain control.

Meanwhile, Alrosa posted a 7 percent year-on-year decrease in its IFRS net profit to 8.623 billion rubles ($279 million) on weaker demand and falling sales volumes.

The company’s revenues slumped by 32 percent to 27.791 billion rubles ($899 million) and EBITDA declined by 44 percent to 12.717 billion rubles ($411 million), with the EBITDA margin falling from 55 percent in the third quarter of 2011 to 46 percent in July-September 2012.

Diamond output increased by 31 percent to 9.1 million carats in the third quarter of 2012 compared to the same period last year.

Alrosa is one of the world's largest diamond companies, accounting for 25 percent of global production.