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Only Expensive Armenian Wines May Be Competitive In Russian Market

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  • Only Expensive Armenian Wines May Be Competitive In Russian Market

    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.
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