Exporting customer-owned precious metals and further operations on customers' instructions under commission agreement
Acting under its own name and at the expense of the customer, VTB can export customer-owned precious metals.
Operations are carried out with fine gold and silver in standard bullions.
Both subsoil users and other Russian legal entities that own precious metals may act as customers.
Exported metals are credited to depersonalised metal accounts (under Loco London terms) opened for the customer with VTB, and then VTB on the customer’s instructions carries out operations with precious metals in international markets in accordance with the account balance.
The minimum term of export and sale after VTB receives confirmation from the customer (refinery) that a metal batch is ready and such metal is credited to the depersonalised account is 5 to 15 business days.
Exported metal must be sold in full within 3 months of the export date.
Export and further operations are carried out on the basis of a commission agreement concluded between VTB and the customer. Agreements for opening depersonalised metal accounts under Loco Moscow and Loco London are concluded with the customer simultaneously with the commission agreement.
The settlement currency is the freely convertible currency (usually, US$).
Foreign currency proceeds are credited to the customer’s account.
On the customer’s instruction, VTB may in part or in full convert the proceeds into Russian roubles.
Key benefits and advantages
- VTB’s superior reliability among Russian commercial banks, which essentially eliminates customer risks;
- VTB’s extensive experience in conducting operations in the international market and its wide network of partners increase the efficiency of operations with precious metals;
- highly competitive price terms;
- the possibility for the customer to receive proceeds in freely convertible currencies and improve the efficiency of metal sales by carrying out derivative operations with them;
- the bank offers subsoil users a service to cover the cost of precious metal refining and processing;
- the possibility to accept the customer’s metal directly from their depository (for subsoil users, from the refinery depository).
Other Customer Operations
- carrying out instructions of the Russian government on the export and sale of gold from the State Depository for Precious Metals and Gems in the foreign market;
- carrying out the orders of Russian subsoil users and banks on the export and/or sale of gold in the foreign market, including customer acquisition;
- providing customers with quotations for the purchase/sale of precious metals, including for depersonalised metal accounts;
- entering into agreements with foreign gold buyers, including industrial end consumers.