ArmInfo.Armenia will extend restrictions on the import of cement and clinker from third countries for another six months. The corresponding decision was made on November 28 at a meeting of the RA government.
As stated in the explanation of the decision, the restrictions and, in fact, the requirement for licensing this activity, were adopted on January 13, 2022, for a period of six months, since then the restrictions on the import of cement and clinker from third countries have been repeatedly extended.
It is noted that as a result of the steps taken, favorable conditions have been created for domestic cement producers to compete in the domestic market with cement imported from third countries. In particular, 1.14 million tons of cement were produced in Armenia in 2023, which is 13.1% higher than the previous year.
Along with the growth in production, cement imports also increased. Thus, in 2023, clinker imports increased by 125.2 thousand tons (an increase of 19.2%), and cement imports increased by 3.5 times and amounted to about 270 thousand tons. And the cancellation of the state duty on clinker imports and the reduction of the state duty on cement imports (from 14 thousand drams per ton to 2 thousand drams) contributed to the diversification of cement and clinker import markets. In particular, in 2023, cement was also imported from Georgia and Russia.
In January-July 2024, cement imports increased again, amounting to 305.1 thousand tons. In fact, over 7 months of 2024, cement imports increased by 3.6 times compared to the same period last year, which is explained by a decrease in the price of Iranian cement at the customs border, which is associated with the provision of state support to the cement manufacturer by the Iranian authorities. At the same time, local cement production declined for the same reasons. In the first half of 2024, it amounted to 485.9 tons, decreasing by 31.6% year-on-year.
, the authors of the initiative note, proposing to extend import restrictions.
The decision comes into force on January 20, 2025 and is valid until July 20, 2025.
In 2018, due to some economic changes in Iran, Iranian cement became cheaper than that produced in Armenia. As a result, the import of Iranian cement increased significantly, and in order to protect local producers, the government imposed a state duty on imported cement and clinker. In March 2019, a duty of 22 thousand drams was proposed for each imported ton of cement or clinker, but following discussions, the rates were adopted at the following amount - 14 thousand drams for cement, and a "zero" dram regime was established for clinker. Since the beginning of this year, the import of cement and clinker was banned in order to protect the interests of local enterprises. The ban on clinker was later lifted. On June 3, 2019, the Armenian Parliament adopted a decision according to which a customs duty on the import of cement from Iran and other countries to Armenia was set at 14 thousand drams per ton until April 1, 2020. This change was later extended several times.
