The new tariffs of the Russian South-Caucasian Railways have made the export of Armenian cement to Russia unprofitable, President of Mika Cement company Mikhail Bagdasarov said during a press-conference today.

Asked about possible participation in pre-Olympic construction in Sochi, he said that as soon as the new tariffs were introduced the price of one ton of Armenian cement in Sochi would make up $140 while the average price of cement in Russia is 2,700 RUR (a bit more than $100).

In the winter the cement prices will drop as usually and Mika Cement will have to curtail its production and reduce its personnel. Presently, the company has 50,000t unsold cement.

To note, many Armenian oil-traders, importers of flour and wheat complain of delays in operations and high tariffs for services of South Caucasian Railways. The State Commission on Protection of Economic Competition is considering these complaints. South Caucasian Railways is 100% subsidiary of Russian Railways. In Feb 2008 it won 30-year censession for Armeian Railways (with right of prolongation for 20 years).