On 5 March 2002 De Beers notified its Trade Agreement with ALROSA to the European Commission for clearance. The European Commission raised concerns on competition grounds regarding the operation of the notified agreement, and to resolve those concerns De Beers gave certain Commitments to the European Commission.
Those Commitments involve a staggered phase out of all rough diamond purchases from ALROSA by De Beers, with no purchases to be made from 1 January 2009. The Commitments are audited by a Trustee. The European Commission accepted those Commitments by decision dated 22 February 2006.
The Court of First Instance in Luxembourg, as first appellate body for decisions of the European Commission, announced in July 2007 that it had annulled the European Commission’s decision to accept the Commitments offered by De Beers to cease all purchases of rough diamonds from ALROSA from 1 January 2009.
De Beers will continue to purchase goods from ALROSA, up to the agreed levels and within the proposed timeframe set out in the annulled Commitments, as it analyses the full judgment to determine the implications for the company.
Trustee:
Grant Thornton UK LLP
30 Finsbury Square
London EC2P 2YU
Contact: Romek Matyszczyk
T +44(0)20 7383 5100
F +44(0)20 7184 4301
www.grant-thornton.co.uk