ONLY EXPENSIVE ARMENIAN WINES MAY BE COMPETITIVE IN RUSSIAN MARKET

Noyan Tapan
Jun 07 2006

YEREVAN, JUNE 7, NOYAN TAPAN. Our statesmen should do everything
possible so that Armenian wines can occupy the Russian market now that
the Russian authorities have put a ban on the import of Moldovian
and Georgian wines into Russia out of political considerations. RA
National Assembly deputy Manuk Gasparian expressed this opinion during
a discussion at the Hayeli Club on June 6.

Chairman of the company Vedi Alco – one of the biggest Armenian
wine-making enterprises, NA deputy Manvel Ghazarian disagreed with
M. Gasparian, saying a rise in the prices of Armenian wines in Russia
depends on the correct marketing policy of businessmen rather than
on officials. According to him, this opportunity is especially great
with respect to the “Areni” wine.

Chairman of the Union of Armenian Wine-Makers Avag Harutyunian said
that at least 10 countries can fill up the current gap in Russia’s
wine market in 2-3 months, with some active steps already being
taken in this direction. In his opinion, Armenia should occupy the
Russian market by exporting expensive wines. As a result of the ban
on Georgian and Moldovian wines, 400 mln bottles of wine a year will
not be imported into Russia, while most of them are sold for 1.7-1.8
dollars, which is not to the advantage of Armenian wine-makers because
the average self cost of Armenian wines is the same.

M. Ghazarian noted that the value added tax (VAT) on the sale of
Armenian wines that results in a freeze of circulating assets is
another circumstance affecting the price competitiveness of Armenian
wines.