Alrosa Approves Possible Settlements in Rubles on New Export Contracts

07/10/2015 11:46

The supervisory board of Alrosa has approved the possibility of settlements in rubles on new export contracts, the Russian diamond mining giant said in a statement. However, the price of diamonds will still be calculated according to the Central Bank's exchange rate based on market prices denominated in U.S. dollars. The format of settlements with current clients will not change and ruble payments for rough diamonds will not be possible before 2018. "This refers to giving buyers the option to settle up in rubles if they express such a desire. The possibility of such settlements will first be considered by the management board, based not only on the wishes of the buyer, but also the advisability of this for the company," the spokesman said. In any case, ruble prices in new contracts will be calculated according to the Central Bank's exchange rate based on current diamond prices, he said.

Alrosa will not enter into new long-term contracts before 2018, when the current contract period expires. Alrosa now has 48 long-term clients, including ten Russian companies, one Belarusian, 16 Belgian, 12 Indian, five Chinese and 4 Israeli; they include jewelry retailers Tiffany and Chow Tai Fook, major dealers and producers of cut diamonds Rosy Blue, Pluczenik and Tache, and Russia's Kristall, Ruis Diamonds and EPL Diamond.