Moscow: ALROSA has formed a long-term client list for the new contract period of 2018-2020. The company’s long-term clients will take part in the first trading session on January 15 to 19 in the coming year. The complete list of clients will be published on ALROSA’s trading website.
Long-term contracts are the mainstay of the marketing policy pursued by ALROSA, as they account for up to 70% of the miner’s rough sales. The contracts guarantee the volume in carats and assortment of monthly diamond deliveries, as well as the possibility of purchasing additional parcels of rough diamonds. This kind of cooperation provides the company and its clients with stable supplies of rough and protects against the volatility of diamond prices in the global market.
ALROSA has formed a balanced client base involving major market players from different geographical areas. This helps to increase the focus of sales on final diamond manufacturers and major jewellery retailers.
All the long-term clients of ALROSA are subject to rigorous selection by a number of legal and financial criteria. In addition, the company’s long-term clients must comply with the Responsible Business Practices, which include, inter alia, transparency and disclosure, anti-corruption, adherence to the Kimberley Process principles and respect for human rights.
As in the current contract period coming to its end, one of the decisive factors in selecting clients was their trading activity with ALROSA and especially their actual demand in the periods of low diamond market.
Among the innovations of this contract period, it is necessary to note the increased volume of goods directed to the domestic market of the Russian Federation for the purposes of supporting the domestic diamond-cutting sector, as well as more rigorous requirements to the company’s clients in terms of meeting the required level of financial performance, as stipulated by the terms of their long-term contracts (covenants).
The company is expanding the list of clients included in the ALROSA ALLIANCE. The selected clients receive the right to use the trademark of ALROSA ALLIANCE, which confirms not only the availability of regular supplies of diamonds from ALROSA, but also the client’s reputation as a reliable and trusted participant of the global diamond pipeline.
