Armenia’s cut diamond production dropped 60.4 percent in the first quarter of 2006 to $38.8 million, according to the Armenian Trade and Economic Development Ministry. Sales of diamonds fell 66.7 percent to $41.9 million, and exports dropped 63 percent to $39.5 million, reported Interfax on April 13.

The ministry blamed disruptions at Shogakn, Armenia’s largest diamond cutting plant, for the drop in production. Shogakn produces approximately 40 percent of Armenia’s cut diamonds. Armenia’s minister of gemstones and jewelry, Gagik Mkrtchian, anticipates the plant will resolve its ‘internal problems’ shortly and return to full production. In 2005, Armenia produced $248.5 million in cut diamonds.