RIA OREANDA
Economic News
September 17, 2004 Friday

Company “Baltica” Bears Losses in Georgia

Saint Petersburg. Saint Petersburg. Events of the last two months
show tendency of changing foreign economic relations with Russia on
part of Georgia, notifies Russias brewing company “Baltica.”

The document informs that there has been developing conflict related
to Russian manufacturers on part of Georgia, including Russian beer
exporters. In particular, cargo with Balticas production addressed
to the distributor form “Royal Express Ltd” has been kept in Georgian
customs without any explanation.

According to preliminary assessment “Balticas” retained proceeds amount
to about $ 850 thousand. The company is unable to sell its product
on Georgian market. It cannot even use transit facilities in Georgia
due to which the company fails to export its production in Armenia.

Brewing Company “Baltica” intended to extend its export in Georgia.
At present its very doubtful that the plan on investment for 2005
amounting to $ 2 million will be concluded.