Fyodor Andreyev, the senior vice president of Russian Railways, is to take over Sergei Vybornov's position as CEO of Russia's state-owned diamond mining company. Andreyev was recently appointed to the supervisory board of Alrosa, which was followed by the replacement of Vybornov on July 10th, reports The Moscow News.

The reasons for firing Vybornov were not specified. However, Vybornov's policy of stockpiling diamonds may have instigated the change in management, as it created budget problems for the company. Under Vybornov's management, Alrosa continued mining diamonds but did not sell them in the world markets. Instead, the company transferred $1 billion worth of diamonds to another branch of the government where they are being kept. This makes it hard for Alrosa to meet financial obligations, The Moscow News reports.

Reportedly, Vybornov failed to cooperate with an Audit Committee that was set up to investigate company policy between the years 2005-2007, the time just prior to Vybornov's appointment as CEO. He refused to disclose documents and is also accused of preventing an inspection in October.

Some sources speculate that the shuffle in management staffing may have been political, as Vybornov is connected to the former Putin administration. The Moscow News states that Andreyev is directly connected to Putin.