ARMENIAN WINEMAKERS TO ENTER RUSSIAN MARKET

The Messenger, Georgia
June 7 2006

Armenia’s state structures should immediately support the entry of
Armenian winemakers into the Russian market, Avag Arutunian, Chairman
of Armenian Winemakers’ Association told journalists on June 6.

“State officials should act quickly taking into account the potential
of Armenian winemakers and expected risks,” he noted.

Arutunian stressed that as long as Georgian and Moldavian wines
weren’t being exported to the Russian market, Armenia should make a
move to fill the gap within the next 2-3 months. “Otherwise, it’ll
be too late,” Arutunian believes.

He pointed out that for the last two months France, Italy and
Azerbaijan have all increased their wine exports to Russia and that
Portugal, Bulgaria, Tajikistan and Uzbekistan were all planning to
do the same.

At the same time, he noted that Armenia produces high-quality wines.

He specified that it was not profitable for Armenia to occupy the
low-quality and cheap wines niche that was opened up after imports of
Moldavian wines costing between USD 1.5-1.7 per bottle were banned,
because that price is too low for most Armenian brands.

“Armenia will be content with selling wines at a cost of USD 2-2.5
or higher,” he noted.