ArmInfo. Armenia will extend restrictions on the import of cement and clinker from third countries for another six months.
As stated in the explanation to the document, restrictions and, in fact, the requirement to license this activity were adopted on January 13, 2022, for a period of six months, then restrictions on the import of cement and clinker from third countries were extended until January 15, 2023. The last time the decision to extend the temporary restriction on the import of cement was made on July 13 and came into force on July 17, 2023 (valid until January 17, 2024).
It is noted that as a result of the implemented steps, favorable conditions have been created for domestic cement producers to compete in the domestic market with cement imported from third countries. In particular, in January-October, 965 thousand tons of cement were produced in Armenia, which is 20.1% higher than the same period last year.
Along with the growth in production, imports of cement also increased. Thus, in January-September 2023, 173 thousand tons were imported to Armenia (an increase of 5.7 times), which is explained by the demand for cement in the domestic market and a reduction in the state import duty from 14 thousand drams per ton to 2 thousand drams.
At the same time, during the reporting period, clinker imports also increased, amounting to 97.7 thousand tons - an increase of 33.4%, which is explained by the abolition of state duty on the import of clinker due to increased demand and price for cement in the domestic market. In addition, the abolition of the state duty on clinker imports and the reduction of the state duty on cement imports contributed to the diversification of the clinker and cement import markets. In particular, in 2023 it became economically feasible to import clinker and cement from Georgia, as well as import cement from the Russian Federation. At the same time, during the reporting period, clinker imports also increased, amounting to 97.7 thousand tons - an increase of 33.4%, which explained by the abolition of state duty on the import of clinker due to increased demand and price for cement in the domestic market. In addition, the abolition of the state duty on clinker imports and the reduction of the state duty on cement imports contributed to the diversification of the clinker and cement import markets. In particular, in 2023 it became economically feasible to import clinker and cement from Georgia, as well as import cement from the Russian Federation.
"Thus, the increase in both cement production and import proves that the proposed rules create favorable conditions for both local production and import of cement," the document reads.