Armenia's Trade Minister: Alrosa is Over Charging Us

Armenia’s Minister of Trade and Economic Development accused Alrosa of over charging Armenian manufacturers for rough diamonds, asking for above market prices.

Minister Karen Tchshmarityan says the Russian price hikes resulted in a sharp drop in purchasing from Alrosa. Of the 400,000 carat quota, Armenian polishers bought only 130,000 carats this year.

Tchshmarityan went on to say that the size of lots offered by Alrosa barred small and medium size businesses from buying rough.

The minister wants to start negotiations with Russia on changing supply volumes and improving cooperation to allow small- and medium-sized businesses easier access to the Russian supply, but a decrease in asked prices will need to take place first.

"We are optimistic about the further growth in the sector, especially since Armenia is getting a chance to increase the diamond acquisition to 1-1.5 million carats in 2005-2006", he said.

Tchshmarityan plans to add 10 thousand jobs to the country’s diamond and jewelry industry and increase the average monthly salary from $60 to $200, as part of a plan of increasing Armenia’s jewelry industry.

The plan calls for increasing jewelry exports to $500 million within three years through infrastructure development, making legislative amendments and providing state support to private companies.