ALROSA announced at it annual business meeting with the company’s long-term clients that as of 2017, the company will start regular special-size (+10.8 carats) diamond auctions in Vladivostok, seen as a way to bolster the eastern market, and is planning to resume special-size diamond auctions in New York. ALROSA further announced that in 2017, all competitive bidding will be held online on a platform for electronic tenders developed by the company. Test sales on the new platform were held in 2016 and received a positive feedback from the participants, the statement said. At the meeting, more than 70 companies from around the world had a chance to discuss with ALROSA’s management diamond market trends, the company’s sales structure, and assess ALROSA’s steps on developing its sales methods and geography. They also gave clients a preview of the 2017 trading schedule - their 12 monthly sales - which will be the final one of the current contract period. ALROSA is preparing a new sales contract that will begin in 2018.
Against the background of the recent abolition of export duty on exports of rough diamonds, intended to benefit foreign buyers, ALROSA also took steps to maintain demand in the domestic market by agreeing to grant a payment grace period up to 180 days to buyers in the domestic market for up to 50% of the contract value (including VAT) secured with a bank guarantee. The Company also reported its plans to open a representative office in Mumbai, India.