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ALROSA ALLIANCE

United Selling Organization

14/3, ul. 1812 goda, 121170, Moscow, Russia

E: A01-1220@alrosa.ru

Frequently asked questions

  • 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.

United Selling Organization

14/3, ul. 1812 goda, 121170, Moscow, Russia

E: A01-1220@alrosa.ru