ArmInfo. The Armenian Agriculture Ministry is considering possible export of Armenian grape-based alcohol to Russia under a single brand, Agriculture Minister Ignaty Arakelyan told reporters. He said that the Ministry's delegation has already held the relevant negotiations with the concerned structures in Moscow. The minister noted that the small and medium-sized businesses come across numerous technical problems when entering the Russian market. The Russian trade companies seek to secure large and stable supplies, but not all Armenian producers can afford it. The supplies under a single brand and on a contractual basis with Russian retailers will be able to ensure such supplies and increase the sales, reducing the risks for the local producers.
To initiate the process, the local producers should consolidate and the Ministry should start more detailed negotiations. "We are making attempts to discuss the proposal with the associations of the sector, however, as of today we have not received positive replies so far," Arakelyan said.
To note, in Jan-Aug 2016, the foreign trade turnover between Armenia and Russia totaled $803.6 mln. The export and import totaled $223.3 mln and $580.3 mln, respectively (62.1% growth and 0.4% decline, respectively).
According to the Customs Service of Armenia, in Jan-June 2016, the wine export from Armenia to the Russian market grew by 20.5% as compared to Jan-June 2015, totaling 604.2 thsd liters. The customs value of the Armenian wine exported to Russia made up $1.8 mln versus $1.2 mln in Jan-June 2015. The total export of Armenian wine increased by 24.7% to 779.9 thsd liters. In the meantime, due to the complicated situation in the Russian market and ruble volatility, in 2015 wine export from Armenia dropped by 31.5% to 1 451,6 thsd liters.