Tweet
DUTY-FREE RUSSIAN DIAMONDS FOR ARMENIA
EurasiaNet.org, NY
June 27 2014
June 27, 2014 - 3:11pm
Russia is giving Armenia a break designed to boost the Caucasus
country's diamond-cutting sector.
The Federation Council, the upper house of Russian Parliament,
has ratified an agreement that scraps export duties on sales of
Russian hydrocarbons and raw diamonds to Armenia. "We will be one
step ahead of other countries that purchase raw Russian diamonds,"
Artur Ashugian, an aide to the Armenian economics minister, told the
Regnum news agency back in 2013, when the agreement was signed.
Armenia was a hub for diamond cutting and processing during the Soviet
era, but the sector has struggled in recent years. Armenian officials
expect a 15 percent hike in cut-diamond production as a result of the
Russian concession. Last year, Armenia produced 94,498 carats of cut
diamonds, the ARKA news agency reported. Russia is a major supplier
of raw diamonds, oil and gas to Armenia.
The agreement contains a provision that bars Armenia from re-exporting
Russian oil, gas and raw diamonds. Oil and gas sales cannot exceed the
domestic needs of Armenia, which virtually has no other source of oil
and gas, other than Russian Armenia also cannot re-sell customs-free
raw Russian diamonds, but can sell the cut Russian diamonds to its
heart's content.
Armenia received the concession even before agreeing to join the
Moscow-led ex-Soviet trade club, the Eurasian Economic Union (EEU).
The diamond-and-energy agreement may help Armenia compensate for some
of drawbacks of EEU membership. Russian officials have said EEU may
create problems vis-a-vis Armenian's commitments to the World Trade
Organization and that Yerevan may have to re-negotiate terms of its
membership in WTO.
http://www.eurasianet.org/node/68796
EurasiaNet.org, NY
June 27 2014
June 27, 2014 - 3:11pm
Russia is giving Armenia a break designed to boost the Caucasus
country's diamond-cutting sector.
The Federation Council, the upper house of Russian Parliament,
has ratified an agreement that scraps export duties on sales of
Russian hydrocarbons and raw diamonds to Armenia. "We will be one
step ahead of other countries that purchase raw Russian diamonds,"
Artur Ashugian, an aide to the Armenian economics minister, told the
Regnum news agency back in 2013, when the agreement was signed.
Armenia was a hub for diamond cutting and processing during the Soviet
era, but the sector has struggled in recent years. Armenian officials
expect a 15 percent hike in cut-diamond production as a result of the
Russian concession. Last year, Armenia produced 94,498 carats of cut
diamonds, the ARKA news agency reported. Russia is a major supplier
of raw diamonds, oil and gas to Armenia.
The agreement contains a provision that bars Armenia from re-exporting
Russian oil, gas and raw diamonds. Oil and gas sales cannot exceed the
domestic needs of Armenia, which virtually has no other source of oil
and gas, other than Russian Armenia also cannot re-sell customs-free
raw Russian diamonds, but can sell the cut Russian diamonds to its
heart's content.
Armenia received the concession even before agreeing to join the
Moscow-led ex-Soviet trade club, the Eurasian Economic Union (EEU).
The diamond-and-energy agreement may help Armenia compensate for some
of drawbacks of EEU membership. Russian officials have said EEU may
create problems vis-a-vis Armenian's commitments to the World Trade
Organization and that Yerevan may have to re-negotiate terms of its
membership in WTO.
http://www.eurasianet.org/node/68796