August 16, 18 by Albert Robinson
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(IDEX Online) – ALROSA, the world's leading rough diamond miner by volume, has tested a payment mechanism with foreign clients using the Russian currency. <?xml:namespace prefix = "o" ns = "urn:schemas-microsoft-com:office:office" /?>

 

In the experiment, 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, the miner said.

 

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 the VTB bank 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 via 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 Agureev.

 

He noted that ALROSA's Supervisory Board instructed the company's management to consider the...

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