Tiffany’s, Hermes, Cartier and Patek Philippe chose diamonds cut in Armenia as industry booms

YEREVAN, JUNE 29, ARMENPRESS. The diamond industry is booming in Armenia, with several companies engaged in negotiations on opening production plants in the country. An Indian diamond producer recently opened a plant in Armenia.

Precious and semi-precious stones, precious metals and related products were the most exported goods in the past few months in Armenia (508 million 61,2 thousand USD – a 3,9% growth compared to the previous year’s same period).

Ministry of Economy Head of the Strategic Sector Division Arevik Margaryan said the growth in exports is mostly associated with diamonds and jewelry products. The growth is related with both the geopolitical situation and the activities of the diamond producers in Armenia.

“The Indian VDA Diamonds company registered in Armenia in July 2022, and they began production in July this year in Abovyan,” she said, adding that the company has invested 10 million dollars in the Armenian city.

7-8 companies are actively engaged in diamond production in the country.

ADM Diamonds, an Armenian producer, is working with innovative technologies and is considered a regional leader in making fancy-cut diamonds.

Diamonds are mostly exported to CIS and EEU countries, with some volumes also to other countries. In 2022 Armenia exported over 34,8 billion drams of diamonds to EEU countries compared to the 2021 figure of 17,3 billion. Exports to other countries amounted to 727 million drams, which is close to the 2021 number.

The economy ministry official says that Armenia’s high-quality professionals ensure high-quality product. “Tiffany & Co., Cartier, Patek Philippe, Hermes and other brands are buying diamonds cut in Armenia. For example, the Armenian Arevak and Shoghakn companies are the official suppliers of diamonds to Tiffany & Co and other leading brands. They ensure quality,” Margaryan said.

New investments will be made in the sector soon, according to the official. Other Indian companies are now conducting negotiations on opening plants.

“They take into account our professional potential. For example, one of the companies has plants also in Russia and they noticed that there are highly qualified Armenians among the workers. So they decided that Armenia would be more convenient for opening a new plant. Our economic situation is also beneficial for them, as well as the government’s support programs such as the infrastructure-for investments, the economic modernization project and the customs duty exemption for imports of equipment, which await new investments,” Margaryan said. In addition, jewelry and diamond production is officially a strategic direction in the government’s list of primary areas of industrial development.

Most of the gold jewelry is exported to Russia, Kazakhstan, other CIS countries, as well as the U.S., the UAE, Turkey, Belgium and other countries.

In 2022, Armenia exported 2,1 billion dram worth of gold jewelry to EEU countries. Exports to other countries stood at 1,5 billion drams.

Anna Grigoryan