Armenia : Diamond industry registers decline

Fibre2fashion.com, India
Feb 17 2005

17th February 2005

The country’s diamond cutting industry dropped by almost 20 percent
in 2004, but government predicts turnaround in 2005. Diamonds driven
exports contribute for the country’ export earnings (39 percent
overall,) and the country has more than 50 cutting firms.

In year-end 2003, Armenia embarkd on a programme to double its annual
cut-diamond production to $500 million, with prospects of creating
10,000 new jobs in a three-year time span.

However, even as the diamond production value for 2004 reached $280
million, it was the fall in dollar by 20 percent versus local currency
that further dragged the industry down.

In addition, Russia failed to deliver the anticipated rough diamonds
complicating future plans. As per the bilateral agreements between
the two countries made in 2001, Armenia firms were to process up to
400,000 carats of Russia rough, but only about 155,000 carats were
imported in 2004, as per report filed by Eurasianet. Meanwhile,
Israel and Belgium carried the bulk of the total of 970,000 carats
imported for processing in 2004.