Based on publications of IA REGNUM.

Gagik Mkrtchan, the head of gemstones and jewellery department of the Ministry of Trade and Economic Development of Armenia comments on the situation in diamond market.

According to the Ministry of Trade and Economic Development of Armenia, in 2003 the volume of diamonds cutting and jewellery enterprises production has exceeded last year results by 75%. Today there are about 60 diamonds cutting plants in Armenia including two large plants Shogakn and Diamotek (over 1000 cutters) and five – six large jewellery enterprises (300-400 cutters). Besides, the government of the country has improved tax and customs legislation systems in order to make them advantageous for diamond and jewellery sectors: VAT has been abolished for diamonds cutting enterprises and practically zero customs tax for raw diamonds and jewellery import and export has been set. Last year export volume totalled to $200 mln. This year this figure is expected to reach the level of $300 mln.

The agreement with Russia provides Armenia with right to buy only 400 thou ct of diamonds a year. It is certainly not enough and Armenia buys diamonds from Belgium and Israel as well. As for Russia, Armenia is holding negotiations with JSC ALROSA concerning additional diamonds purchases. Intergovernmental quota is a guaranteed minimum for Armenia.