The governments of Russia and Armenia have signed a protocol extending the agreement for a tax-free trade in diamonds between the two countries. The agreement has already been operational for a year. The protocol confirming the extension was signed by Armenia’s Minister of Energy Yervand Zakharyan and his Russian counterpart Alexander Novak, according to reports in the Armenian press. It also covers natural gas and other energy related products.

Last week, the Armenian minister had confirmed the extension during a Cabinet meeting.

As a result, Armenian companies can continue to purchase natural rough diamonds from Russia without having to pay export duties. The protocol will boost the local diamond cutting industry.

The reports indicate that Armenia imported 107,000 carats of rough in the first ten months of 2014, including 38,000 carats from Russia.  Exports of polished account for about 10% of Armenia’s total exports, well below the peak of approximately 40% that the sector contributed to the total export basket in the early years of this century.