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Russian miners explore payment schemes eschewing dollar - Kremlin

Mining News - Published on Fri, 17 Aug 2018

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Reuters quoted two of Russia’s biggest mining companies as saying that they were investigating rouble-based payments schemes, amid calls from Moscow to reduce the role of the US dollar in Russian trade and so limit the impact of US sanctions. The Kremlin said that Russia favoured bilateral trade with all countries in their national currencies, rather than the dollar, but that the idea needed detailed work before being implemented.

Russia’s Norilsk Nickel, which vies with Brazil’s Vale SA to be the world’s biggest nickel producer and is the world’s top palladium producer, said on Wednesday it was discussing the possibility of settling payments in roubles with foreign customers that had signalled their readiness for such an arrangement.

Russian miner Alrosa, the world’s largest producer of rough diamonds in carat terms, also said on Wednesday it was testing a mechanism to settle payments in Russia’s currency.

The company said in a statement that “By way of an experiment, such deals were completed with clients in China and India. Should the need arise, the company is ready to implement this rouble-based payments scheme in future.”

The Shanghai branch of Russia’s VTB bank facilitated Alrosa’s first rouble-based deal with a Chinese client.

VTB’s first deputy chief executive Yuri Soloviev said that “The ability to pay in roubles contributes to increasing the share of payments settled using national currencies in overall Russia-China trade.”

In July, the Moscow Exchange said it was launching more currency pairs, including trading the rouble against sterling, the Chinese yuan and the Turkish lira, facilitating trade in national currencies.

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Posted By : Rabi Wangkhem on Fri, 17 Aug 2018
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