It's Official: Sergey Ivanov is New Alrosa CEO

After two weeks of rumours and speculation, Russia has officially appointed Sergey Ivanov Jr as chief executive officer of diamond mining colossus Alrosa.

Ivanov, aged just 36, will replace Andrey Zharkov who is leaving a year ahead of his due date. Zharkov has reportedly been in dispute with the finance ministry over Alrosa's 2017 budget.

Ivanov is the son of the former head of the Kremlin administration. He was supported by the finance ministry, according to sources familiar with the situation, Reuters reported.

Ivanov has been a senior vice-president of Russia's largest lender, Sberbank, for less than a year. Previously, he headed insurance firm SOGAZ. Ivanov has been awarded a three-year contract.

"On the one hand, Ivanov lacks industry experience, but on the other hand he joins from Sberbank's management team which is well perceived by the market," said VTB Capital.

The Russian government sold a 10.9 percent stake in Alrosa in 2016 as part of a privatization program. The move generated $813 million for government coffers.

The state plans to cut its stake in Alrosa again, to 25 percent plus one share by 2019, but the finance ministry has said no sale is planned in 2017.