Armenia extends restrictions on cement import 

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.