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Armenia Expects Decline in Diamond Cutting Industry

Tacy Ltd,Diamond Consultants.
July 04, 2004 Armenia expects production in its diamond cutting industry to decline
before the end of 2004, says Gagik Mkrtchian, Chief of the Trade and
Economic Development Ministry's precious stones and jewelry
department.
Production has fallen in the industry in the past month, partly due to
a drop in supplies of Russian rough diamonds, explains Mkrtchian. In
2002 Russia and Armenia signed a deal for the supply of over two
million rough diamonds over a period of five years. According to the
agreement, Russia supplies 400,000 carats of gem quality rough
diamonds this year, increasing to 450,000 for 2005 and 2006. So far
this year Russia has supplied Armenia with 55,000 carats of rough
diamonds, says Mkrtchian, while last year total supplies were 130,000
carats of a 400,000 carat quota, accounting for a 15 percent share of
Armenia's total supplies.

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