Siberian diamond boss quits for 'medical reasons'

Andreev has led the diamond company since 2009 and will remain on the Supervisory Board.

This board had recommended a new five year term for the 48 year old senior executive. 'According to a number of news sources, however, Deputy Prime Minister Yury Trutnev, who supervises Alrosa, was against this,' reported Interfax..

Candidates to takeover as Alrosa CEO include the head of Russia's Federal Property Agency (Rosimushchestvo) Olga Dergunova, and the Chief Federal Inspector for Yakutia Yury Podturkin, added the news agency.

Dergunova previously denied that she was leaving Rosimushchestvo for Alrosa adding 'this decision is always in the hands of the government'.

A company spokesman said Andreev had quit due to 'medical circumstances'.

Alrosa first vice-president Ilya Ryaschin has assumed Andreev's responsibilities.

The company accounts for 99% of all rough diamonds produced in the Russian Federation. Its share in the global diamond output is 27%.

Alrosa is the world's top diamond producer by output in carats. Its shares traded down on Monday in the wake of the announcement.