ALROSA has formed a list of long-term clients for the new contract period 2018-2020. From January 15 to January 19, 2018, the Company’s long-term clients will participate in the first trading session under the new long term Contract.
Long-term contracts form the basis of ALROSAsales policy accounting for up to 70% of sales of the diamonds mined by the Company.The contracts guarantee volumes and assortment of monthly supplies, as well as the possibility to purchase additional batches of rough diamonds.This form of cooperation provides the Company and its clients with stable supplies of rough diamonds and protects against the volatility in diamond prices on the world market.
ALROSA has formed a balanced client base from the largest market participants represented in different geographical areas.The focus of sales policy on final manufacturers of polished diamonds and representatives of large jewelry retail is increasing.
All long-term clients of ALROSAgo through a rigorous qualification based on a number of legal and financial criteria.In addition, long-term clients must comply with the principles set in the Guidelines on Responsible Business Practices, which include, inter alia, transparency and disclosure, anti-corruption, adherence to the Kimberley Process principles, and observance of human rights.
As well as in the expiring Contact period, among determining factors of long term clients selection – trade activity with ALROSA, in particular, actually demonstrated demand in the periods of low market.
The innovations of this contract period include the increase in the volume of productssupplied to the Russian domestic market to support the Russian cutting and polishing sector, and heightened requirements to the Company’s clients to comply with the level of financial performance, which is stipulatedby long-term contracts (covenants).
The Company expands the list of clients included in ALROSA ALLIANCE. Qualified clients acquire the right to use the ALROSA ALLIANCE logo that confirms not only regular rough diamond supplies from ALROSA, but also the reputation of a client as a reliable and trusted participant of the world diamond complex.