When speaking to journalists last week Gagik Abrahamyan, director of the British-registered Diamond Company of Armenia (DCA) and president of the International Association of Armenian Jewelers, said the measure excluding sharp fluctuations of the rate and further appreciation of the national currency will make the market situation more predictable for exporters. According to Abrahamyan, exporting companies in Armenia do not yet work in the red, but he says their profits have considerably reduced. He probably meant the greatest diamond producing factory – “Shoghakn”. Let’s mention that it’s been several months since the factories of this sector have reduced the rates of their production. Compared to the first quarter of the last year in the current year diamond processing rates got reduced by 50%. During the past several months Shoghakn factory has reduced its production rates by 60-70%. It has also decreased the number of its employees. According to Abrahamyan the owner of Shoghakn, Jewish descent, Lev Leviev has cut it production rates by 70-80% not only in Armenia but also in other companies, which he owns elsewhere. The reason is that he’s now busy with sale and purchase of real estate in Moscow. Director of Shoghakn, Sergey Gasparyan doesn’t however agree with Abrahamyan’s statement. “In 2002-2003 we used to exchange one dollar at 580 AMD. Now the rate is 340 AMD per USD. We lose 240 AMD,” said Mr. Gasparyan. “Our inflows are in USD. We used to pay 4 cents for electrical power. Now we pay 8 cents. How can the AMD revaluation not negatively affect our production? I am sure 99% that the owner of the factory is reducing the production because of this fact. The net cost of diamond processing in Armenia has increased and it’s not profitable for the owner.” Gasparyan doesn’t defineitely agree with the statement of Abrahamyan, according to which the Russian diamond producing magnate “Alrosan” is going to provide raw material to Armenian producers in order to overcome the crisis. “You know years ago Armenia was receiving raw material from Russia but at a very expensive price. Thus it’s not yet clear what conditions “Alrosan” is going to offer to Armenians. I cannot yet say whether “Shoghakn” will cooperate with “Alrosan” or not.”
