YEREVAN COGNAC DISTILLERY SUSPENDS COGNAC EXPORTS TO RUSSIA

Interfax News Agency
Russia & CIS Business and Financial Newswire
March 27, 2006 Monday 5:29 PM MSK

The Yerevan Cognac Distillery (EKZ), Armenia’s largest exporter of
alcohol products, has temporarily suspended shipments of cognac to
Russia, the EKZ press service told Interfax.

The suspension is due to the introduction of new excise stamps in
Russia starting April 1, an EKZ representative said. The press service
said this is only a temporary technical problem and EKZ will resume
cognac exports to Russia as soon as the company receives new stamps.

Armenian Wine-Makers Union chairman Avag Arutyunian told Interfax
that, of the 31 producers of alcohol products in Armenia, 26 of them
handle exports, which are mainly comprised of cognac and are primarily
shipped to Russia.

Armenian alcohol exporters have not been exporting products to Russia
for two weeks and have not been taking new orders since they have
been unable to attain the new stamps, he said. Russia has informed
Armenian exporters that the stamps will not be ready for at least a
month, he said.

Exports of Armenian cognac increased 250% to 9.078 million liters in
2005 from 2.591 million liters in 2004. The Yerevan Cognac Distillery
accounts for almost half of cognac output in the country.

France’s Pernod Ricard acquired the Yerevan Cognac Distillery for $30
million in May 1999. Its trademarks are registered in 48 countries
and its products are sold in 25 countries.