New Arrangements for Import of Russian Diamonds to Armenia

RusData Dialine – BizEkon News
November 12, 2004 Friday

REGNUM

The government of Armenia approved a proposal with regard to
thesigning of a protocol on the supply of rough natural diamonds
toArmenia from Russia for a period from 2002 to 2006.

The government of Armenia approved a proposal with regard to the
signing of a protocol on the supply of rough natural diamonds to
Armenia from Russia for a period from 2002 to 2006.

Prices for the Russian diamonds became higher than those in the world
market following the liberalization of the Russian diamond industry.
As a result, Armenian companies were incapable of meeting the quota
on diamond imports. In 2003, Armenians imported only 130 thousand
carats of diamonds out of the total quota for 400 thousand carats of
diamonds set by the Russian party. Consequently, the Russian diamond
imports accounted for 35% of all diamond raw materials processed in
Armenia in the year 2003. A shortage of rough diamonds was corrected
by shipments from Israel and Belgium. In the meantime, in accordance
with the 2002 agreement, Armenia would import from Russia 2.1 million
carats of natural gem-quality diamonds and 3 million carats of
technical quality diamonds up to 2006.

The intergovernmental Armenian-Russian commission convened recently
in Moscow. The relations between Armenia and ALROSA were the focus of
negotiations. The Armenian party put forth a request for the right to
re- export a part of diamonds found unfit for further processing due
to technical specifications.