Grand Bazaar jewelries avoid Russian customs by shifting production to Armenia: Report

Although there is no specific sanction imposed by Russia against Turkey on gold and jewelry, Turkish jewelers have faced problems in exporting their products to this country due to high customs taxes and several hurdles in Russian customs. Leading jewelers based in the historic Grand Bazaar and Kuyumcukent, a modern jewelry market in Istanbul, have started to shift their production to Armenia, as Habertürk reported on May 3. 

Around 5-6 percent of the jewelry workshops in the Grand Bazaar have already been moved to Armenia, according to the report. 

Jewelers, most of who are of Armenian origin, have preferred this country mainly due to its lower labor costs, high quality gold and jewelry artisanship and easier trade opportunities with Russia and former Soviet republics. 
The existence of the Eurasian Customs Union, which was launched in January 2015 by Kyrgyzstan, Armenia, Russia, Belarus and Kazakhstan, has made their activities easier, according to the report. 

Many stores in the Grand Bazaar have seen financial problems due to a decline in the number of tourists, added the report. 

In Kuyumcukent, there has been a rise in the number of Syrian jewelers. Their main market is Dubai, as reported by Habertürk.