The government of Zimbabwe is on the verge of agreeing an estimated US$1.4bn three-year sale-purchase agreement with Russia’s diamond producer and a Swiss firm that will result in the exchange of Zimbabwean diamonds for fuel.
According to Business Times, Zimbabwe is finalising a sale-purchase contract with a Swiss firm, Tatneft, which will provide diesel while it gets diamonds from the Zimbabwe Consolidated Diamond Company (ZCDC).
The deal is expected to be operational in 2020 and will run until 2023. Under the deal, Alrosa of Russia will receive diamonds from the ZCDC every month with an estimated value of US$40m.
According to the report, the Reserve Bank of Zimbabwe (RBZ) is expected to sign the contract on behalf of Zimbabwe.