ALROSA tests payment mechanism in rubles for contracts with foreign clients

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Moscow, August 16, 2018. − PJSC ALROSA, the world’s leading rough diamond miner, has tested payment mechanism with foreign clients in Russian currency. As an experiment, relevant transactions were conducted with clients from China and India. If necessary, the Company is ready to use this payment scheme in rubles in the future.

VTB was in charge of the transaction in China. The Chinese company paid for the goods purchased at the auction for special-size rough diamonds (+10.8 carats) held by ALROSA in Hong Kong in June. By agreement with the winner of one of the lots, the contract provided for the payment in Russian rubles instead of US dollars. Payment was made through VTB branch in Shanghai.

Besides, ALROSA’s long-term client from India paid for one of the scheduled diamond supplies under the contract in Russian rubles. In this case, the buyer transferred the amount in rubles from his account in another Russian bank.

According to Evgeny Agureev, Director of USO ALROSA, payment through foreign branches of Russian banks makes it possible to speed-up and simplify the payment process, as there is no more need to use correspondent accounts with other banks.

“The practice in the international rough diamond market provides for settlements in US dollars between sellers and buyers of rough diamonds. We have tested an alternative payment scheme to understand the possibility of its implementation and nuances to be taken into consideration. The experience is positive, so we will apply it on an as-needed basis,” said Mr. Agureev.

He also recalled that earlier ALROSA Supervisory Board instructed the Company’s management to consider the possibility of rough diamond sales for rubles.

This page was last updated on 16 August 2018 at 10.33