The Russian ruble devaluation may result in at least 30% decline of Armenian brandy export to Russia in 2014, Chairman of the Union of Armenian Winemakers Avag Harutyunyan, said at a press conference on Monday.
He said that fall in the RUR/USD exchange rate inflicts tangible damage to the Armenian alcohol producers, who are losing about 4 mln RUR daily. He added that nearly 85% of Armenian wide and 90% of brandy are sold in Russia. Wine export is also expected to fall in 2014. The 30% fall in the exchange rate has resulted in revenue decline since September. Armenian alcohol producers in Russia obtain small profit - 15-20%. "If the RUR/USD exchange rate falls to stabilize within the next 15-20 days, this may have very serious consequences for Armenian exporters", he said.
Harutyunyan pointed out that brandy export from Armenia dropped by 4.1% to 9.400 mln liters in Jan-Sept 2014 versus 9.800 mln liters in Jan-Sept 2013. Within the specified period, wine export grew to 1.300 mln liters versus 991 thsd liters in Jan-Sept 2013.
As regards the situation for Armenian alcohol exporters to Ukraine, the expert said, "The producers cannot receive back their money for the sale of the product. In general, it has been impossible to buy dollars in Ukraine over the past week".
The expert thinks that if the Russian partners cannot pay money for the alcohol, they could provide the producers with bottles, labels, sugar and other expendables being used in alcohol production.
Harutyunyan said that some producers are trying to enter the Chinese and EU markets to compensate for their losses somehow.