LEVAYEV IS UNLIKELY TO SELL FACTORY

Lragir, Armenia
July 23 2007

The head of the department of jewelry of the ministry of trade and
development Gagik Mkrtichyan confirmed the news that the Russian
companies, particularly Alrosa, is likely to enter the jewel market
of Armenia. By the way, it was preceded by cutting of imports of raw
material from Russia to Armenia from 2004. Gagik Mkrtichyan declined
to say who had initiated to stop the supply of diamonds from Russia
but he said there is experience of 40 years of cooperation with
Russia, and now efforts are made to restore supply of diamonds. It
is possible that our jewelers work with Russia in the way they work
with Belgium or Israel, i.e. take the raw materials and return the
product. Currently Armenia imports raw material from Africa and some
Arab countries and exports diamonds to the United States and Russia.

Gagik Mkrtichyan said he has learned that the Israeli owner of the
Shoghakn Factory Lev Levayev is unlikely to sell the factory.