Armenia’s largest French-owned brandy company has stopped exports to Russia, Economy Minister Vahan Kerobyan said on Thursday.
Speaking to parliament members, Kerobyan said the move comes as part of French Pernod Ricard’s decision that owns the Yerevan Brandy Company to stop all exports of its international brands to Russia. The measure came into force at the end of April 2023.
Pernod Ricard said also it will cease the distribution of its portfolio in Russia, a process that will take some months to complete.
"We live in a difficult environment. Today with are discussing with procurers, among other things, the high exchange rate of the Armenian dram, the changes taking place in various markets. I certainly have not received official information from Pernod Ricard, but it seems to be official that the Yerevan Brandy Company has stopped exports to Russia. These are all issues that will have an impact on grape procurement. We must, in general, see what environment, what changes are taking place," said the minister in response to MP’s worries that the move will hit hard Armenian farmers and producers.
According to Kerobyan, the government is able to respond to the changes as quickly as possible, even if not always perfectly and in the best way, but without shocks.
"We see that there are structural changes in the wine industry. More wine varieties are being planted today. Now our Vine and Winemaking Strategy is in circulation and we hope that after the adoption of this strategy we will be able to make significant changes in this sector as well," he added.
The Yerevan Brandy Factory, an exclusive producer of ARARAT cognacs, is a biggest taxpayer of the sector and purchaser of grapes. In 1999, the Yerevan Brandy Factory joined the international Pernod Ricard group, one of the world leaders in alcoholic drinks production, ARKA reports.
