Armenia’s polished diamond output of fell 49.2 percent to approximately US$99 million (AMD 32.97 billion) in January-September of this year, according to Gagik Mkrtchian, the head of the Trade Ministry’s precious stones and jewelry department.

Mkrtchian told Russian news source Interfax that sales for these first nine months of 2007 also fell 51.1 percent to approximately US$95.68 million (AMD 31.84 billion) and exports similarly decreased 50.4 percent to approximately US$94.51 million (AMD 31.45 billion).

Mkrtchian predicts the “slump” in the diamond cutting center will recover by the end of this year and that the sector is expected to grow in 2008. He added that the slowdown in production and exports has translated into local job cuts.

Russian diamond producer Alrosa and the Armenian government signed a cooperation agreement in August between the cutting and jewelry sectors.  Mkrtchian said that a joint company between Armenian cutting companies and Alrosa is expected to start work in 2008, which will enhance Armenia’s cutting center.

Mkrtchian also told Interfax that he hopes, for the sake of local employment, that Shogakn, the country’s largest cutting company, which is owned by Lev Leviev, would not close, despite reports claiming the contrary.