The Ministry of Economics of Armenia sees difficulties for farmers due to the cessation of Pernod Ricard exports to Russia

In Armenia, problems may arise with the purchase of grapes from farmers after the cessation of exports to Russia of the products of the Yerevan Brandy Factory. Minister of Economy of the country Vahan Kerobyan told about it.

He confirmed the information about the termination of the export of products to the Russian Federation from the plant, which belongs to the French corporation Pernod Ricard.

“I have no official data, but it seems that it is official: YBC will stop exporting to Russia. This may affect the purchases of the grape harvest, and we must monitor the situation and respond as necessary,” – told Kerobyan. (quote from Sputnik Armenia).

The publication, citing the State Revenue Committee of the republic, writes that about 75% of cognac exports are supplied to Russia, and the Yerevan Brandy Factory is one of the major suppliers, but not the only one.

The French company Pernod Ricard (brands Absolut, Jameson, Ararat), like other alcohol brands, after the imposition of sanctions against Russia, announced its resignation. At the beginning of May the company confirmedthat since the end of April has stopped deliveries of products to Russia. Full exit from the market, according to Pernod Ricard, may take several months.

Pernod Ricard bought the Yerevan Brandy Factory and with it the rights to the Ararat brand in 1998 for $30 million and an obligation to invest another $1 million in Armenian agriculture over five years.