Armenia`s authorities make one more attempt to protect domestic  cement producers

ArmInfo.The Armenian authorities are making another attempt to protect the interests of domestic  cement producers. At a meeting on May 26, the Committee on Economic Affairs of the National Assembly of the Republic of Armenia issued a positive conclusion on the amendments to the Law "On State Duty"  submitted by the country's government.

As Deputy Minister of Economy of the Republic of Armenia Edgar  Zakaryan noted in his speech, the measure is aimed at protecting the  country's cement plants from imported Iranian cement, which is much  cheaper than its domestic counterpart. Back in 2021, a duty of 14  thousand drams was introduced on imported cement, and 2 thousand  drams per ton on clinker (cement raw material subject to crushing).  Now it is proposed to increase the duty on imported cement from 2 to  8 thousand drams per ton. In 2022, taking into account the rise in  prices for Iranian gas, the state duty was canceled. However, now  cement prices in Iran have started to fall again, which has created  unequal conditions in the domestic market of Armenia.

The proposed measure on new state duty rates is intended to create  equal conditions for competition in the market, since the current  situation threatens the closure of domestic enterprises. In Iran,  production is cheaper due to state subsidies and low energy prices,  and Iranian cement is exported in large volumes to neighboring  countries. The new duty should help local plants operate in a  competitive field.

According to the State Revenue Committee, 436 thousand tons of cement  were imported to Armenia in 2024 (an increase of 72% compared to the  same period in 2023). The price of one ton of Iranian cement on the  border with Armenia fluctuates around $35, the customs duty is $1,  and transportation through Armenia costs an average of $40. As a  result, the cost price of Iranian cement in Yerevan is about $76 or  30-31 thousand drams. In Armenia, the cost price of one ton of  produced cement is 42-44 thousand drams.