Advanced Search

Alrosa Taking Diamond Payments in Rubles

Aug 16, 2018 9:17 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Alrosa has accepted payment for rough sales in Russian rubles as part of a pilot program, claiming it is potentially faster and simpler than dollar transactions.

With ruble payments, the money goes to branches of Russian banks outside of the country, rather than having to involve other financial institutions, the miner explained Thursday. Most international rough-diamond transactions are currently in dollars.

“The experience is positive, so we will apply it on an as-needed basis,” reported Evgeny Agureev, director of Alrosa’s United Selling Organization.

Receiving more sales proceeds in rubles would also hedge Alrosa against currency fluctuations: The weak dollar was one of the reasons why Alrosa’s revenue and profit fell last year, as the company mainly sells diamonds in the US currency, but its costs and earnings reports are in rubles.

The purpose of Alrosa’s pilot was to establish whether and how it could implement this alternative method of payment, Agureev added. Clients from India and China participated in the experiment.

A Chinese buyer bought goods at an Alrosa auction of rough stones above 10.8 carats in Hong Kong in June, and paid for them in rubles through Russian lender VTB Bank’s Shanghai branch. In another case, a long-term Indian client of Alrosa paid for a scheduled supply of diamonds by transferring the amount in rubles to its account with a different Russian bank.

Image: Alrosa 
Tags: Alrosa, China, dollars, Evgeny Agureev, India, Rapaport News, Rubles, Russian rubles, VTB Bank
Similar Articles
AlrosaAlrosa Names New Director of Severalmaz
Jan 15, 2020
Alrosa has appointed Ravil Sanatulov to succeed Andrey Pismenny as general director of its Severalmaz mining division.Sanatulov
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.