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Rough diamonds

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.
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 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 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.
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 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 Center). How do we know that the submitted documents comply with ALROSA’s requirements?
In clause 1.20. 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 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 of entering our company in the List of business entities entitled to participate in competitive sales of natural rough diamonds held by ALROSA, but we did not receive an invitation to participate in competitive sales. Why?
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:
  • sufficient volume and assortment of goods from rough diamond lots offered for sale;
  • requirement to the number of buyers who did not participate in the previous competitive sales to be not less than 30% of the full list of participants of the next competitive sales defined by the Committee.
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.
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 Center). How do we know that the submitted documents comply with ALROSA’s requirements?
In clause 1.20. 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.
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.
Our company submitted all the documents and received confirmation that the documents comply with the requirements. How and when do we know that our company is qualified to conclude spot transactions for the purchase of rough diamonds with ALROSA?
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.
How can we guarantee our monthly participation in trading sessions for buyers under spot transactions?
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:
  • 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 share of such participants in the next trading session can reach 80% of the full list of participants.
Thus, active purchasing during the previous trading sessions increases the chances of your company to be invited to next trading sessions.
Our company filled in document templates, attached the documents stipulated by Sections 1, 2 and 3 of Appendix 1 to the Regulations and submitted them to ALROSA (Customer Policy Center). How do we know that the submitted documents comply with ALROSA’s requirements?
In clause 1.20. 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.

Polished diamonds

Who can sign a contract for wholesale purchase of polished diamonds?
Legal entities and individual entrepreneurs registered on the territory of the Russian Federation and foreign states can sign contracts for wholesale purchase of polished diamonds. Legal entities and individual entrepreneurs registered under the legislation of the Russian Federation, located on the territory of the Russian Federation, holding certificates of special purpose registration issued by the territorial inspections of assay supervision, and (pursuant to the legislation of the Russian Federation) entitled to deal in precious stones, are deemed the companies—buyers of the internal market of the Russian Federation. Legal entities and individual entrepreneurs established and registered under the legislation of a foreign state, and located outside the Russian Federation, appertaining to the participant—state of the Kimberley Process and (pursuant to the legislation of these states) entitled to deal in precious stones, are deemed the companies—buyers of the external market of the Russian Federation.
What are the requirements for potential wholesale buyers of polished diamonds?
Potential buyers of polished diamonds (partners) must meet the following requirements:
  • Transparency and availability of information about potential buyers (partners) and their activities, including: transparency of corporate management structure, availability of information about shareholders, management bodies
  • Reliability, financial stability, due performance of duties and obligations, operation in keeping with the rules of corporate responsibility for complying with the accepted standards
  • Reliable market business reputation of the company and its management
  • No pending reorganization, liquidation or bankruptcy procedures, or grounds arising
  • No activity of the company suspended in compliance with the procedure stipulated by the Code of Administrative Offences of the Russian Federation or legislation of other states
No violation of civil, tax, customs or other legislation recognized as substantial by the Market Conjuncture and Production Committee
What documents should we submit to be considered for a contract for wholesale purchase of polished diamonds?
Potential buyers (partners) from outside the market of the Russian Federation should submit the following documents to ALROSA:
  • DIAMONDS ALROSA Questionnaire
  • Consent to personal data processing together with passport copy
  • Company registration documents (certificate, trading license, etc.)
  • Extract from the trade register of the country of registration or other equivalent proof of legal capacity in accordance with the legislation of the country of registration
  • Reference from the bank, not more than 1 (one) month old
  • Power of attorney for persons authorized to negotiate and sign documents on behalf of an economic entity
When examining applications, ALROSA’s Market Conjuncture and Production Committee considers the relationship history of the company with ALROSA Company. When appropriate, potential buyers (partners) must notify DIAMONDS ALROSA about all the changes in the submitted documents within 15 (fifteen) calendar days from the day of change.
What are the grounds for refusal to sign a contract for wholesale trade in polished diamonds?
A wholesale purchase contract with a potential customer can be refused if:
  • No documents or information were submitted
  • Forged documents or deliberately misleading information were submitted.
  • USO of ALROSA branch or other ALROSA’s divisions refused to enter the company in the list of potential buyers
What is the postal address for applications and documents?
Address: 12, ulitsa Smolnaya, 125493, Moscow, Russian Federation. Phone: +7 (495) 777-0941, +7 (495) 777-0946. Fax: +7 (495) 777-2966, +7 (495) 777-1080. Email: MarakinaNA@alrosa.ru or brilliance@alrosa.ru
Who can be a retail buyer of certified polished diamonds?
Individuals or individual entrepreneurs legally registered on the territory of the Russian Federation or foreign states can be retail buyers of certified polished diamonds.
How are payments for purchased polished diamonds made?
Payment for purchased polished diamonds is effected by bank transfer against an invoice.
What are the grounds for refusal of signing a contract for cutting and polishing of rough diamonds on the subcontracting basis?
Potential partners from outside the market of the Russian Federation should submit the following documents to ALROSA:
    • ALROSA DIAMONDS Clients Registration Data
    • Reference from your bank, not more than 1 (one) month old
    • Consent to personal data processing
    • Power of attorney for the persons authorized to carry on negotiations on behalf of a company—potential buyer
    • Where appropriate, potential buyers (partners) must notify DIAMONDS ALROSA about all the changes in the submitted documents within 7 (seven) calendar days from the day of change
When examining applications, ALROSA’s Market Conjuncture and Production Committee considers the relationship history of the company with ALROSA Company. If the company is already a customer of the USO of ALROSA branch, and has passed the relevant inspections, the company can be entered in the list of potential buyers (partners) after the appropriate confirmation is obtained from the branch.
What is the postal address for applications and documents?
Address: 12, ulitsa Smolnaya, 125493, Moscow, Russian Federation. Phone: +7 (495) 777-0941, +7 (495) 777-0947. Fax: +7 (495) 777-2966, +7 (495) 777-1080. E-mail: boguslavskiyav@alrosa.ru or brilliance@alrosa.ru
Address: 12, ulitsa Smolnaya, 125493, Moscow, Russian Federation. Phone: +7 (495) 777-0941, +7 (495) 777-0946. Fax: +7 (495) 777-2966, +7 (495) 777-1080. Email: MarakinaNA@alrosa.ru or brilliance@alrosa.ru
Legal entities and individual entrepreneurs registered on the territory of the Russian Federation and foreign states can sign contracts for wholesale purchase of polished diamonds. Legal entities and individual entrepreneurs registered under the legislation of the Russian Federation, located on the territory of the Russian Federation, holding certificates of special purpose registration issued by the territorial inspections of assay supervision, and (pursuant to the legislation of the Russian Federation) entitled to deal in precious stones, are deemed the companies—buyers of the internal market of the Russian Federation. Legal entities and individual entrepreneurs established and registered under the legislation of a foreign state, and located outside the Russian Federation, appertaining to the participant—state of the Kimberley Process and (pursuant to the legislation of these states) entitled to deal in precious stones, are deemed the companies—buyers of the external market of the Russian Federation.
Potential buyers of polished diamonds (partners) must meet the following requirements:
  • Transparency and availability of information about potential buyers (partners) and their activities, including: transparency of corporate management structure, availability of information about shareholders, management bodies
  • Reliability, financial stability, due performance of duties and obligations, operation in keeping with the rules of corporate responsibility for complying with the accepted standards
  • Reliable market business reputation of the company and its management
  • No pending reorganization, liquidation or bankruptcy procedures, or grounds arising
  • No activity of the company suspended in compliance with the procedure stipulated by the Code of Administrative Offences of the Russian Federation or legislation of other states
No violation of civil, tax, customs or other legislation recognized as substantial by the Market Conjuncture and Production Committee
Potential buyers (partners) from outside the market of the Russian Federation should submit the following documents to ALROSA:
  • DIAMONDS ALROSA Questionnaire
  • Consent to personal data processing together with passport copy
  • Company registration documents (certificate, trading license, etc.)
  • Extract from the trade register of the country of registration or other equivalent proof of legal capacity in accordance with the legislation of the country of registration
  • Reference from the bank, not more than 1 (one) month old
  • Power of attorney for persons authorized to negotiate and sign documents on behalf of an economic entity
When examining applications, ALROSA’s Market Conjuncture and Production Committee considers the relationship history of the company with ALROSA Company. When appropriate, potential buyers (partners) must notify DIAMONDS ALROSA about all the changes in the submitted documents within 15 (fifteen) calendar days from the day of change.
A wholesale purchase contract with a potential customer can be refused if:
  • No documents or information were submitted
  • Forged documents or deliberately misleading information were submitted.
  • USO of ALROSA branch or other ALROSA’s divisions refused to enter the company in the list of potential buyers

Industrial diamonds

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)
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 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.
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)
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).
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
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 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 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.
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.
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.
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 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.
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.
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 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.