Purchase and Sale of Precious Metals
JSC VTB Bank regards cooperation with Russian subsoil users as a priority in the precious metal market. The Bank has its offices in all main precious metal producing areas. The Bank employs the following principles in customer relations:
- multifaceted approach to customer servicing, which includes, besides sales agreement, an offer of a package of services, in particular, lending, equipment lease, cash and settlement services, etc.
- highly competitive price terms; and
- flexible approach to pricing, depending on the amounts of metal supplied and the level of relations with that customer.
JSC VTB Bank purchases fine precious metals in bullions from subsoil users. Settlement currency is the Russian ruble.
Purchases are effected on the basis of a sales agreement concluded between VTB and a subsoil user, usually for a whole season. It is mandatory to register such an agreement with the Russian State Depository for Precious Metals. This is a framework agreement which establishes the procedures of pricing, metal delivery, and settlement.
Pricing options:
- price for each metal batch is fixed at the delivery of such batch to VTB's depository.
- advance metal price fixing;
- after the conclusion of an agreement (in case the customer leaves margin (collateral) in the form of VTB promissory notes);
- after the delivery of raw materials to the refinery (no collateral is required).
- metal delivered to VTB's depository is credited to an impersonal metal account opened for a JSC VTB Bank customer, and is subsequently sold by VTB by debiting the account in accordance with the customer's instruction. In this case, the price is set on the date of debiting the account.
The settlement system envisages customer prepayment at the delivery of raw materials to the refinery.
The Bank offers to cover the costs of refining and processing of precious metals.
Sale of standard and non-standard precious metal bullions to jewelry enterprises and industrial consumers
JSC VTB Bank offers standard gold and silver bullions, as well as 99,99% purity bullions weighing from 1 g to 1000 g.
Sale is carried out on the basis of sales agreements and contracts concluded between VTB (in Moscow) or its branches (in other regions) and purchasers. These are framework agreements (they establish the procedures of pricing, metal delivery, and settlement). Transactions for separate metal batches are concluded within such agreements.
It is also possible to conclude a one-time agreement specifying the amount of metal and price.
Sales are effected on a pre-paid basis.
Metal is delivered directly to the purchaser or given to its representative from VTB's depository (in Moscow) or from a branch depository (in other regions).
Settlement currency is the Russian ruble.
Delivery time:
- minimum: on the payment date (in case of first rate payment and distribution from VTB's depository in Moscow);
- maximum: within 3 business date after VTB receives the payment (in case of delivery to a region from Moscow).
Key benefits and advantages:
- availability of VTB branches in all main regions of precious metal consumption, which minimizes the time between payment and delivery, and increases the promptness of settling issues;
- multifaceted approach to customer servicing, which includes, besides sales agreement, an offer of a package of services, in particular, lending, equipment lease, cash and settlement services, etc.
- highly competitive price terms;
- flexible approach to pricing, depending on the amounts of metal supplied and the level of relations with that customer.
Sale of customer-owned precious metals in the Russian market under a commission agreement
VTB in its own name and at the expense of the customer sells customer-owned precious metals to Russian legal entities.
Sale is effected on the basis of a commission agreement concluded between VTB and the customer. Both subsoil users and other Russian legal entities owning precious metals may act as customers.
The object of sale are fine precious metals in bullions.
Settlement currency is the Russian ruble.
Minimum period of metal sales after VTB receives the customer's (refinery) confirmation that a metal batch is ready and the customer actually receives proceeds is 3 to 5 business days.
Key benefits and advantages:
- VTB's superior reliability among Russian commercial banks, which essentially eliminates customer risks;
- VTB's extensive experience in conducting operations and a wide network of counteragents, which ensures lower customer expenses on sales of precious metals and increases its efficiency;
- highly competitive price terms;
- the Bank offers subsoil users to cover the cost of precious metal refining and processing;
- possibility to accept customer's metal directly from its depository (in case of subsoil users, from refinery depository).
