The procedure of forming the list of participants of the next competitive sales has been worked out in keeping with the requirements of the Federal Antimonopoly Service (FAS) of Russia and approved by the FAS.
Tis procedure stipulates for the following:
The list of participants of the particular competitive sales is formed based on organizational and technical (technological) resources and legitimate restrictions at holding the competitive sales, with due account of:
No invitation implies that:
At that moment there were no organizational and technical (technological) resources to enter your company in the list of participants of competitive sales.
As soon as it becomes possible, with due account for the above requirements, your company will be entered in the Lists of participants of the next competitive sales.
We will email or write to you within 30 calendar days from receipt of your information, giving you the decision made by ALROSA’s Competitive Sales Committee. If you have been successful, this notice will contain information about how to enter your company in the list of business entities entitled to participate in competitive sales of natural rough diamonds.
In clause 1.14. of the Questionnaire you provide details of a contact person in your company (including his/her e-mail address). Within 5 workdays confirmation of your application’s receipt and information on compliance/non–compliance of the submitted documents with the requirements of the Regulations will be sent by ALROSA to this e–mail address.
Rough diamond supplies under spot transactions stipulate for the sale of rough diamonds based on the actual availability of the goods in stock at the sales divisions of ALROSA. The procedure of forming the List of participants of trading sessions held for conclusion of spot transactions, agreed by the FAS of Russia stipulates for the monthly rotation of the participants of trading sessions. Thus, it is impossible to guarantee participation in trading sessions (there may be insufficient stock).
Nevertheless, it is important to note that if diamonds in stock are insufficient to conclude spot transactions with all the buyers who meet requirements, preference will be given to:
Thus, active purchasing during the previous trading sessions increases the chances of your company to be invited to next trading sessions.
The obtained information (documents) are verified within 30 calendar days upon their receipt by ALROSA. Based on the results of verification data, ALROSA Market Conjuncture Analysis Panel makes a decision.
The Market Conjuncture Analysis Panel holds its meetings not less frequently than once in two months (Clause 7.8. of the Regulations). Thus, within 30–90 calendar days upon receipt by ALROSA of the information (documents), a notice of entering your company in the lists of business entities entitled to conclude spot transactions for the purchase of rough diamonds or of a motivated refusal thereof will be sent on ALROSA’s letterhead to the e-mail or postal address you provided.
In clause 1.14. of the Questionnaire you provide details of a contact person in your company (including his/her e-mail address). Within 5 workdays ALROSA will sent to this e–mail address confirmation of your application’s receipt and information on compliance/non-compliance of the submitted documents with the requirements of the Regulations.
Apart from the documents you submitted earlier, you should also submit the information and documents stipulated by Section 3 of Appendix 1 to the Regulations. Please also update the previously submitted documents if any changes have occurred.
Other things being equal, we give preference to active buyers who have purchased natural rough diamonds from ALROSA, especially during slow periods on the global diamond market. Buyers are assessed using our Methodology, a strictly formalized algorithm agreed with the FAS of Russia. The most important factors we look at in a company applying for a long-term agreement are:
The company with the highest rank through this analysis is given priority to establish a long-term agreement with ALROSA.
Declaring a company to be in compliance with our requirements and criteria opens a ‘window of opportunity’, but does not guarantee an immediate agreement. Rough diamonds are supplied under long-term (up to three years) agreements based on an exact mathematical forecast of ALROSA’s resources (taking technological and economical limitations into account). This forecast is made to determine whether it is reasonable for ALROSA to assume obligations for guaranteed monthly supplies of pre-agreed volume and assortment of rough diamonds. The most probable dates when such a resource opportunity can appear are the termination dates of existing long-term agreements. Also, a new ‘window of opportunities’ may occur following the start-up of new diamond-mining deposits.
No. You will find specific grounds for refusal in your notice. For example, we may point out that for the last three years, the average annual sales of rough and polished diamonds of your company total less than US$50 million. Once you know your grounds for refusal, you can apply again next year if this no longer applies. In any case, you can still take part in auctions and spot transactions.
Your documents are usually examined within 30 calendar days of our receiving them. If necessary, this process can be extended by up to 90 days. The , the ALROSA Market Conjuncture Analysis Panel makes a decision based on this information. The Panel meets at least once every two months . So, within 30–90 calendar days of us receiving your information, , we will send a notice of compliance/non-compliance to your company, using the e-mail or postal address you provided.
In clause 1.14. of the Questionnaire, you provide details of a contact person in your company. ALROSA will send an email confirmation to this address within five working days of our receiving your application, with information on the compliance/non-compliance of the submitted documents with our requirements.
First of all, you should apply to ALROSA in writing. You should also submit the information and documents stipulated by Sections 4 and 5 of Appendix 1 to the Regulations, and update the earlier submitted documents if any changes have been made.