Vahan Kerobyan had a regular meeting with the representatives of the diamond production and jewelry industry

On January 16, 2021, the RA Minister of Economy Vahan Kerobyan had a regular meeting with the representatives of the diamond production and jewelry companies of Armenia at the “ADM Diamonds” diamond production company in Abovyan to continue the joint discussion of the problems that have accumulated in those spheres. The first meeting of the Minister with the representatives of this industry took place on December 22, 2020, at the Ministry of Economy, during which Minister Kerobyan noted that discussions of the problems in the two spheres will be continuous and held on site at the companies, too.

Before discussing the issues, the founding director of “ADM Diamonds” company Artak Baghikyan introduced the Minister and other participants of the meeting to the production process of the company and the conditions of the building, a part of which is best suited for employees with disabilities.

The agenda included discussion of problems previously inventoried in the fields of diamond production and jewelry, as well as production of gemstones and proposed solutions thereof.

When presenting the problems of the diamond production industry, the founding director of “ADM Diamonds” company Artak Baghikyan stressed the importance of the sector’s development for Armenia.

In order to make the cooperation with Alrosa company more effective, it was proposed to create a joint-stock company with shares of the government and manufacturing companies, which will act as a major buyer and will be able to acquire from Alrosa straight the entire batch of raw materials needed by Armenian companies. The issues of the value added tax with Russia’s Gokhran, the need to regulate the importation and exportation procedures and other issues were also raised. It was suggested to create a cooperative for diamond production and jewelry.

An important suggestion in connection with jewelry was proposed that would exempt the sector from the value added tax or set a lower interest rate, which, according to the participants of the discussion, could help business entities get out of the shadow economy without an additional tax burden. The acceptance by the EEU countries of the hallmark performed in Armenia was also regarded important. It was suggested to establish an organization with the state’s participation following the example of the diamond production industry, which will acquire the gold in bulk on favorable terms. The availability of accessible finances was especially emphasized. The representatives of the sector considered the application of customs duties to raw precious gemstones and semi-precious stones as a serious obstacle to the development of production.

Summing up the meeting, the Minister of Economy thanked everyone for the substantive discussion of all stakeholders and noted that he sees a great potential and perspective development for the diamond production and jewelry sectors. He also assured that the Ministry is ready to listen, discuss, and jointly solve the sector’s problems. “Armenia’s future lies in the long value chains and complex goods, and jewelry and diamond production are among the best examples thereof”, said Vahan Kerobyan.

The participants of the meeting were unanimous that in order to develop the sectors of diamond production and jewelry in Armenia, it is necessary to unite the efforts of the state and companies operating in the sector.