Prominent mineral water producer suspends operations in Georgia due to sanctions

30 April, 07:21 PM
Two Borjomi plants suspend operations due to the war in Ukraine (Photo:Borjomi website)

Two Borjomi plants suspend operations due to the war in Ukraine (Photo:Borjomi website)

The Borjomi mineral water company has shut down two plants in Georgia due to the war in Ukraine, according to the official statement of the company, reported the Georgian 1TV channel on April 29.

The enterprise belongs to Mikhail Fridman, who came under sanctions fol-lowing Russian invasion of Ukraine.

The company cited financial hardship as the main reason for the shut-down.

"The difficult situation in the key markets of the company's products was exacerbated by limited access to bank accounts, which stopped the company's ability to receive foreign exchange earnings and settle with creditors," the company said.

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At the same time, the Borjomi Georgia company hopes that the situation will improve in the near future.

The only producer of Borjomi mineral water is IDS Borjomi Georgia. This company is part of IDS Borjomi International, which belongs to the Russian conglomerate, Alfa Group, owned by Mikhail Fridman.

This brand of mineral water is popular in Ukraine, and is sold widely across the territories of the former Soviet Union.

Earlier, Fridman and his business partner, Petr Aven, decided to transfer their shares in Alfa Bank Ukraine to Ukraine residents, in a move agreed upon with the central bank, after being hit by EU sanctions.

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