Armenian Cognac Exports to Russia: Regulatory Hurdles and Market Shifts

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Export problems for Armenian cognac to Russia surfaced in March this year and demand a high‑level resolution. Marina Arakelyan, who coordinates Armenian cognac producers, stated that potential buyers are closely watching the situation, with concerns raised by news outlets including Sputnik. She noted that the obstacles are not rooted in politics, but rather in policy and administration, and that government support would help pave a clearer path for shipments. The plan is to engage with Rosalkogolregulirovanie to discuss possible solutions and align on regulatory steps that could facilitate smoother cross‑border trade.

Industry insiders report that major Russian importers have run into supply disruptions related to Armenian cognac. The difficulty has been linked to delays at the Russian‑Georgian border, particularly at the Verkhniy Lars checkpoint. The Federal Customs Service of the Russian Federation has intensified inspections of vehicles carrying cargo from Armenia, causing bottlenecks that ripple through the logistics chain and affect delivery timelines for retailers and consumers. This update comes from market participants and was reported by RBC on October 3. [RBC]

Earlier in May, there were signals that the Yerevan Brandy Factory, controlled by the French group Pernod Ricard, may pause exports of Ararat cognac to Russia. Interfax reported that Pernod Ricard had indicated a suspension of operations in Russia, which would imply the withdrawal of Ararat from the Russian market through its local partner PR Rouss. Armenian authorities, including the head of the Ministry of Economy, indicated that there was no official statement confirming an export halt at that time, but acknowledged that any change could impact the grape supply chain and related agricultural activities. This context came as Vahan Kerobyan clarified the situation publicly, noting potential implications for grape procurement if shipments were disrupted. [Interfax, Armenian government statements]

Since Russia began its military operation in Ukraine, several major beverage producers exited the Russian market. The list includes Diageo, LVMH, Pernod Ricard, and Brown‑Forman, bringing with it brands such as Johnnie Walker, Baileys, Hennessy, Moët & Chandon, Chivas Regal, Jameson, Absolut, and Ararat. Market observers noted that, after a dip in the second quarter of 2022, alcoholic beverage imports began to recover gradually. The broader pattern reflects shifts in consumer demand, supply chain realignments, and changes in regulatory oversight across the region. [Market analyses, industry sources]

Historically, imports of strong alcohol into Russia have seen declines. In the period under review, a notable drop was recorded, underscoring the sensitivity of cross‑border trade to geopolitical events, sanctions, and shifts in supply routes. The evolving stance of producers and regulators continues to shape the availability and pricing of cognac and other fortified spirits in the Russian market, with Armenia, Georgia, and the broader Caucasus region playing a key role in supply dynamics for European and regional brands. [Trade data, industry commentary]

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