Why Armenian Cognac is Stuck in Lars: Cognac Producers Seek Solutions

Issues surrounding the export of Armenian cognac to Russia carry no political undertones, and cognac producers are hopeful that the government will assist them in addressing the significant losses they have incurred. This was stated by Marina Arakelyan, the coordinator of Armenian cognac producers, at the multimedia press center of Sputnik Armenia.

Arakelyan is confident that the issue related to Armenian cognac needs to be resolved at a high level. According to her, all trucks carrying cognac are being stopped in Lars, and the products are sent for laboratory testing, which can take between 28 to 60 days. There is no guarantee for any producer whether their products will pass the tests and whether they will be allowed to reach Russia or not, resulting in substantial losses for all producers during this period. On average, a producer has lost about $2,000 over the 10 days of inspections in Lars.

“Today we are facing a major export problem. There was a warning from the Federal Service for Alcohol Market Regulation (Rosalkogolregulirovanie) about stricter controls regarding quality and certification, but we, as producers, somewhat overlooked this,” noted Arakelyan.

Currently, producers are facing a serious problem, suffering in varying degrees. Larger producers are able to somewhat resolve the issue since both the Armenian market is developed and there are other export directions, yet approximately 95 percent of Armenian cognac exports go to Russia, where Armenian cognac has been recognized and consumed since 1902.

According to Arakelyan, active discussions are underway with the Ministry of Economy and the Ministry of Finance of Armenia, trying to find a solution to the current situation. She also suggests that cognac producers write a joint letter to Rosalkogolregulirovanie, asking for clarification on what issues have been identified with the producers so that they can understand what they need to regulate to avoid being subjected to restrictions.