ARMENIAN POLISHED DIAMOND PRODUCTION DOWN BY OVER 60% IN Q1

Tacy, Israel
April 16 2006

Armenia’s polished diamond production during the first quarter of
2006 fell by over 60 percent as compared to the first three months
of 2005, according to Gagik Mkrtchian, Head of gemstones and jewelry
at the Armenian Trade and Economic Development Ministry.

Mkrtchian says polished sales fell 66.7 percent to nearly US$42
million, while exports were down 63 percent to nearly US$40
million. Mkrtchian attributes disruptions at Shogakn, Armenia’s
largest diamond cutting plant, for the drop. Mkrtchian expects that
Shogakn, which produces 40 percent of Armenia’s polished diamonds,
will resolve its ‘internal organizational problems’ soon.