Russia faces problems with cognac production after disagreements with Armenia
Until now, 70% of cognac distillate supplies to Russia have come from Armenia, but now supplies have sharply decreased
Russia has faceda shortage of raw materials for cognac production after Armenia cut its supplies.
"There is a shortage, and a serious one at that. <...> Until now, Armenia was the main supplier of cognac distillate, but now the supply of raw materials from the republic to Russia has decreased," market participants comment.
The situation with raw materials for cognac production could have worsened due to the complication of relations between Russia and Armenia.
In order to avoid a shortage of cognac distillate, the Russian Soyuz Cognac proposed to the authorities to simplify its import from Georgia – a letter with the relevant initiative was sent to the Ministry of Finance.
Currently, distillate from Georgia is subject to stricter controls than products from other countries. Soyuz Cognac noted that as a result of strict control over supplies, Georgian raw materials began to enter Russia under the guise of products from Armenia and Kazakhstan, which are the main suppliers of cognac distillate.
At the same time, experts believe that simplification of supplies from Georgia may not solve the problem of raw material shortages. In any case, Russia's dependence on imported distillate for cognac will remain.
The cooling of relations between Armenia and Russia occurred as a result of the war in Nagorno-Karabakh, which resulted in the dissolution of the unrecognized Armenian republic and the complete transfer of the region to Azerbaijani control.
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