Alrosa has begun accepting payments in euros, as it continues to test the waters with currencies other than dollars.
The move, which currently extends to only one of its Chinese clients, is an attempt to avoid the consequences of future US sanctions on the Russian miner, according the South China Morning Post. That publication identified the client as Hong Kong-based jewelry retailer Chow Sang Sang.
Alrosa started the pilot program last year, and is currently evaluating the results, a spokesperson for the company told Rapaport News. It is also testing payments in Russian rubles for customers in India and China, as the transactions are faster and simpler than with dollars, it said in August.
The company declined to confirm whether the move was connected to potential US sanctions, but said it was working on several projects to avoid repercussions should it become a target. Alrosa is not currently subject to any US trading restrictions, but President Donald Trump’s administration has placed sanctions on a range of Russian institutions and individuals it considers a threat to American security.
“The solution of this issue does not depend on us, and we understand that this situation is quite unpredictable,” an Alrosa spokesperson told Rapaport News Monday. “Therefore, we have developed several scenarios in advance in case of the introduction of any restrictions to the company’s activities.”
The company has increased its focus on the Chinese market in recent years, and currently has six long-term Chinese clients, including Chow Tai Fook, the biggest Chinese jewelry retailer, and Chow Sang Sang, which joined the client list at the start of this year.