Vneshtorgbank and ALROSA diamond producer signed on 26 March 2003 a Strategic Alliance Agreement.
This instrument sets forth further lines of mutual efforts VTB and ALROSA are to follow and it is intended to foster enhanced leadership of each party in their respective markets. Under the Strategic Alliance Agreement, Vneshtorgbank and ALROSA agreed on large-scale expanded business partnership where Vneshtorgbank will be engaged in comprehensive banking services for ALROSA and its subsidiaries, in particular, in export and import finance, will further improve and develop ALROSA`s international and in-house payment clearing system using latest treasury management technologies.
Mr. Kalitin, ALROSA president (left), and Mr. Kostin, Vneshtorgbank President and C.E.O., signed the Agreement.
This Agreement secures positive long-term co-operation results of the parties in a variety of business lines. To illustrate, Vneshtorgbank arranged in March 2002 a facility for ALROSA issuing a three-year letter of credit for US$38 million against payment for imported equipment manufactured by Svedala Systems AB, Sweden, under Sweden EKN insurer`s export guarantee. In June 2002, Vneshtorgbank took part as lender and arranger in US$60 million two-year syndicated loan facility made to ALROSA. Russian Commercial Bank Ltd., Zurich, acted as facility lead manager, and Vneshtorgbank Group banks lent the greatest part.