Sberbank and Trafigura of Singapore make pilot blockchain transaction securing West Siberian oil sales
- The solution helps streamline business processes and improves document workflow efficiency dramatically
- Blockchain transactions are perfect for businesses involved in multi-party deals
September 5, 2019, Vladivostok — PJSC Sberbank, Russia, and Trafigura Group Pte. Ltd, Singapore, made a pilot blockchain transaction under a West Siberian oil sales deal at the Eastern Economic Forum.
Sberbank purchased from Trafigura its accounts receivable of a major Turkish trader. Sberbank and Trafigura agreed on the financial terms of their deal and made a settlement that was tracked online step by step.
The transaction was carried out on a platform created by the parties using the Hyperledger Fabric framework, with the transaction date, amount, timeframe, delivery scope, and financial terms blockchain-encrypted.
The blockchain technology helped the parties cut their operating costs, documentation approval time, and labor costs related to the transaction.
Alexander Vedyakhin, First Deputy Chairman of the Executive Board, Sberbank,
“We have carried out our first blockchain transaction with Trafigura, a leader in international commodities trading, and we plan to further develop this technology. This solution helps streamline business processes and dramatically improves the efficiency of document workflow. As of now, with all transactions the documents are being manually processed and then handled from Trafigura to the bank. Our blockchain pilot project records every step of the transaction: request for purchase of receivables, application processing and its approval with the bank, issuing the bank's offer, confirmation of terms by Trafigura, and settlement of the transaction. This cuts the procedure time from one day to one hour. I believe that these blockchain-based transactions are perfect for businesses involved in multi-party deals.”
Sberbank is now looking into expanding the list of blockchain project partners and is set to apply this technology in other trade financing operations in the future.
Jonathan Kollek, President, Trafigura Eurasia LLC,
“Today's announcement is a result of an intensive and successful cooperation between Sberbank and Trafigura.”