Armenia reaches agreement with Georgia on brandy transit to Russia

TBILISI. June 24 (Interfax) - Armenian Economy Minister Gevorg Papoyan and Georgian Deputy Prime Minister and Economy Minister Levan Davitashvili have agreed on a mechanism for the transit of Armenian brandy through Georgian territory to Russia, Papoyan said following negotiations in Tbilisi.

"As a result of high-level negotiations, an agreement has been reached to allow the passage of 55 trucks carrying Armenian brandy from the GEZi customs terminal [Poti, Samegrelo-Zemo Svaneti region, Georgia] today, with an additional 72 trucks to be cleared within the next seven days, followed by another 24 trucks. At the same time, the Armenian side will ensure the unimpeded transit exit of trucks carrying bottled brandy into Georgia," Papoyan was quoted by the Armenpress news agency as saying.

An agreement has also been reached to organize the export process of Armenian bottled brandy in the future under mutually acceptable and predictable conditions, he said.

The Georgian Economy Ministry, for its part, limited its statement to reporting on Davitashvili's meeting with Papoyan, without mentioning the outcome of negotiations on the Armenian brandy transit issue.

It was previously reported that Papoyan informed the Armenian parliament in early June about the problem with the passage of trucks carrying Armenian brandy. Dozens of vehicles had been stuck at the Georgian-Russian border for over a month. Armenian customs authorities had suspended the processing of this cargo due to queues and delays at the Georgian border.

In May, Armenian brandy producers periodically held protests outside the Georgian Embassy in Yerevan, claiming that their shipments bound for Russia were being held for days or even weeks at the terminal in Georgia's customs and economic zone under the pretext of inspections. Protesters said trucks carrying brandy were being directed to Georgia's GEZi customs terminal, which typically handles vehicles transporting hazardous goods.

Armenian media suspected Georgian authorities of deliberately blocking the transit of brandy from Armenia due to competition in the Russian market. According to media reports, Armenia and Georgia ranked second and third, respectively, in Russian retail sales of brandy and cognac in January-April. Armenian products hold nearly 22% of Russia's brandy market, while Georgia's share is 11.2%.

Tbilisi denied any pressure, saying that Armenian shipments undergo standard procedures.

Transit through Georgia is the only land trade route between Armenia and Russia.