On a test basis, PJSC ALROSA transacted business with clients from China and India on the basis of payment in Russian currency. “If necessary, the Company is ready to use this payment scheme in rubles in the future,” ALROSA stated.
Chinese company VTB, which was in charge of the transaction in China, 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,” ALROSA said. “Payment was made through VTB branch in Shanghai.”
Also, one of ALROSA’s long-term clients 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,” ALROSA elaborated.
Evgeny Agureev, Director of USO ALROSA, explained that 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,” Agureev noted. “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.”
He pointed out that earlier, ALROSA’s Supervisory Board had instructed the Company’s management to consider the possibility of rough diamond sales in rubles.
News Source: gjepc.org