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Alrosa Testing Payments in Euros
Mar 14, 2019 8:04 AM
By Rapaport News
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RAPAPORT... Alrosa has begun accepting payments in euros, as it continues to test the waters with currencies
other than dollars.
The move, which currently extends to only one of its Chinese clients, is an attempt to avoid the
consequences of future US sanctions on the Russian miner, according the South
China Morning Post. That publication identified the client as Hong Kong-based jewelry
retailer Chow Sang Sang.
Alrosa started the pilot program last year,
and is currently evaluating the results, a spokesperson for the company told Rapaport
News. It is also testing payments in Russian rubles for customers in India
and China, as the transactions are faster and simpler than with dollars, it
said in August.
The company declined to confirm whether the
move was connected to potential US sanctions, but said it was working on several
projects to avoid repercussions should it become a target. Alrosa is not
currently subject to any US trading restrictions, but President Donald Trump’s
administration has placed sanctions on a range of Russian institutions and
individuals it considers a threat to American security.
“The solution of this issue does not depend
on us, and we understand that this situation is quite unpredictable,” an Alrosa
spokesperson told Rapaport News Monday. “Therefore, we have
developed several scenarios in advance in case of the introduction of any
restrictions to the company’s activities.”
The company has increased its focus on the
Chinese market in recent years, and currently has six long-term Chinese
clients, including Chow Tai Fook, the biggest Chinese jewelry retailer, and Chow
Sang Sang, which joined the client list at the start of this year.
Image: Rough diamonds (Alrosa)
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Tags:
Alrosa, Chow Sang Sang, Chow Tai Fook, Rapaport News, sanctions
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