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Frequently asked questions

  • Our company submitted all the documents and received confirmation that these comply with your requirements. How and when do we know that our company is qualified to participate in 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.
  • We received a notice to enter our company in the list of business entities entitled to contract spot sales for the purchase of rough diamonds, but we did not receive an invitation to inspect and purchase rough diamonds. Why is this?

    You will receive an invitation for the trading session to be held in the month following the decision of our Market Conjuncture Analysis Panel. As a rule, an invitation is sent 10 calendar days before the start of a trading session.
  • Our company participates in competitive sales held by ALROSA. We would like to purchase rough diamonds under spot transactions. How should we proceed?

    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.
  • I understand there are a number of other companies which have met the requirements to become ALROSA long-term buyers. How can we raise our chances to enter into a long-term agreement with ALROSA?

    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:
    • Sum cost of rough diamond purchases in total, with weighting given to purchases made in weak markets (in USD)
    • The share of selected (purchased) natural rough diamonds in the total volume of rough diamonds offered for sale in the trading sessions, % by value
    The company with the highest rank through this analysis is given priority to establish a long-term agreement with ALROSA.
  • Our company received a notice declaring it to be in compliance with your requirements and criteria as long-term buyers. When will an agreement be signed?

    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.
  • Our company received a notice saying we did not qualify to become long-term buyers. Does it mean that we have no chance to enter into a long-term agreement in future?

    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.
  • Our company submitted all the documents and received confirmation that we comply with ALROSA’s requirements. How and when will we know that our company can enter into a long-term agreement?

    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.
  • Our company filled in document templates, attached the documents stipulated by Sections 1-5 of Appendix 1 to the Regulations, and submitted them to ALROSA (Customer Policy Department and Marketing). How do we know that the submitted documents comply with ALROSA’s requirements?

    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.
  • Our company currently carries out spot transactions with ALROSA for the purchase of rough diamonds. We would also like to sign a long-term agreement. How should we proceed?

    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.
  • How can we guarantee our monthly participation in spot transactions trading sessions?

    Unfortunately, selection for sales events depends on both the volume of diamonds for sale, and a set procedure for selecting buyers – this is (worked out with the Russian FAS, and mandates the monthly rotation of participants. So it is not possible to guarantee participation in trading sessions, as there may be insufficient stock to accommodate all buyers. You should also be aware that if there are not enough diamonds in stock to satisfy all buyers, preference will be given to the most active buyers in the previous trading sessions. This activity level is based on actual data about: а) refusals to participate in trading sessions for which the invitation was sent; b) the share of contracted (selected) rough diamonds from the volume offered for purchase (selection percent); c) the cost of rough diamonds purchased under spot transactions. The share of such participants in the next trading session can reach 80% of the full list of participants. This means that active purchasing during the previous trading sessions increases your company’s chances of being invited to subsequent trading sessions.
  • Our company participated in previous trading sessions, but we did not receive an invitation for the next trading session. Why is this?

    We have a procedure for drawing up the list of participants for each industrial diamonds spot trading session, which satisfies the requirements of the Federal Antimonopoly Service (FAS) of Russia. This is as follows:
    • Sales must take into account the physical availability of goods in stock at the sales divisions of ALROSA.
    If industrial diamonds in stock are not sufficient to conclude spot transactions with all qualified buyers (as in Clause 5.4 of the Regulations), preference is given to:
    • 1. Buyers who did not participate in the previous trading session. The number of such buyers should not be less than 20% of the full list of participants of the next trading session
    • The most active buyers in the previous trading sessions. Activity level is determined based on the actual data about: а) refusals to participate in trading sessions for which the invitation was sent; b) the share of contracted (selected) rough diamonds from the volume offered for purchase (selection percent); c) the cost of rough diamonds purchased under spot transactions
    The number of buyers who participated in the previous competitive sales must not exceed 80% of the full list of participants of the next competitive sales defined by the Committee. So you probably didn’t receive an invitation because:
    • Your company refused to participate in the previous trading session
    • Your company purchased (selected) only a low share of the rough diamonds available
    The total cost of the rough diamonds your company purchased under spot transactions in the previous trading sessions was lower than the total cost paid by others (calculated in US Dollars)
  • We received notice that our company was entered in the list of business entities entitled to spot trade industrial diamonds with ALROSA, but we did not receive an invitation to inspect and purchase. Why is this?

    You will receive an invitation for the trading session to be held in the month following the decision of our Market Conjuncture Analysis Panel. Invitations are generally sent 10 calendar days prior to the beginning of a trading session.
  • Our company submitted all documents and received confirmation that our documents comply with your requirements. How and when do we know that our company is qualified to conclude spot transactions for the purchase of industrial diamonds with ALROSA?

    We check your information/documents within 30 calendar days of receipt. The ALROSA Market Conjuncture Analysis Panel then makes a decision at its next meeting (the Panel meets at least every two months). So you should receive notification as to whether you can trade within 30–90 calendar days of us receiving your information. This will be sent to the email or postal address you provided.
  • Our company completed document templates, attached the documents stipulated by Sections 1-3 of Appendix 1 to the Regulations, and submitted them to ALROSA (Customer Policy Department and Marketing). How do we know that our submission complies with ALROSA’s requirements?

    In clause 1.14. of the Questionnaire you provide contact details. ALROSA will email confirmation of your application’s receipt, plus information on compliance/non-compliance of the submitted documents, within five working days.
  • Our company has participated in previous competitive sales. We did not receive an invitation for the next event. Why not?

    Unfortunately, there is a limit to the number of buyers for each competitive sale, and the number of previous buyers must not exceed 70% of the full list of participants of the next competitive sale.. Also, winners of previous competitive sales are more likely to be included. When the number of winners of previous competitive sales exceeds 70% of the number of participants for the next event, buyers are ranked in preference according to the total value of their previous purchases (calculated in US Dollars).
  • Our company filled in document templates, attached the documents stipulated by Sections 1–2 of Appendix 1 to the Regulations and submitted them to ALROSA (Customer Policy Department and Marketing). How do we know that the submitted documents comply with ALROSA’s requirements?

    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.
  • Do ALROSA’s requirements and criteria differ, depending on the kind of sale?

    Yes.
    • There are minimum purchase requirements for competitive sales. Please see Sections 1–2 of the Table of Requirements
    • For spot sales, please see the requirements in Sections 1–3
  • Does ALROSA specify requirements for buyers of natural rough diamonds?

    Yes. You’ll find these in Section 5 of the Regulations On the Procedure and Terms of Sales of Natural Rough Diamonds by OJSC ALROSA, Chapter 5 Requirements, Criteria and Norms Applied by OJSC ALROSA to Purchasers of Rough Diamonds (Sections 1– 3).
  • What forms/methods of industrial diamond sales exist in ALROSA?

    ALROSA holds two kinds of industrial diamond sale:
    • Competitive sales
    • Spot sales (by stock availability)

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