Armenia and Georgia Reach Agreement to Ease Brandy Transit to Russia

YEREVAN — The Armenian and Georgian governments have reached an agreement that is expected to remove major obstacles to the transit of Armenian brandy exported to Russia through Georgia, according to Economy Minister Gevorg Papoyan.

Shipments from several Armenian brandy producers were significantly disrupted after Georgian authorities introduced physical inspections on the alcoholic beverage in late April. Since then, many trucks carrying brandy have been held up in Georgia pending the results of lengthy quality tests. Citing this “congestion,” Armenia’s customs service temporarily banned other brandy trucks from entering Georgia en route to Russia on June 10.

The affected exporters, heavily reliant on the Russian market, have suffered significant financial losses due to missed delivery deadlines. Some companies have even suspended operations as a result.

Armenian officials have raised the issue with Georgian authorities multiple times in recent weeks. However, Tbilisi has yet to publicly provide a clear explanation for the transit inspections.

On Monday, Papoyan and Eduard Hakobian, head of Armenia’s State Revenue Committee, held talks with their Georgian counterparts in Tbilisi. Following the meeting, Papoyan announced that more than 150 Armenian trucks currently stuck at a Georgian customs terminal would be allowed to proceed to Russia in the coming days. In turn, Armenia will lift its ban on brandy trucks entering Georgia, he said in a Facebook post.

“An agreement was also reached on organizing the export process of Armenian bottled cognac (Armenian brandy) on mutually acceptable and predictable terms,” Papoyan added, though he did not disclose further details of the agreement.

One of the affected companies, Proshian Brandy Factory, reported that as of Tuesday afternoon, none of its 19 trucks had been cleared to leave the Gezi customs terminal. Gayane Poghosian, a senior executive at the company, expressed cautious optimism about the deal.

“We expect a solution whereby trucks don’t enter the [Georgian] Gezi customs terminal and are not held up by the Georgian side,” Poghosian told RFE/RL’s Armenian Service. “That would be the solution to the problem.”

According to government data, Armenia produced over 220 billion drams ($560 million) worth of beverages last year, with brandy distilled from grapes comprising the majority of that production. Most of it is exported to Russia.