Russia's plan of online wine sales could harm Armenian producers- RBC

YEREVAN, February 13. /ARKA/. The Eurasian Economic Commission (EEC), the executive arm of the Eurasian Economic Union (EEU), said that the terms of a trial distant sale of Russia-made alcoholic drinks may contradict the EEU treaty and discriminate the interests of its other member countries (besides Russia these are Armenia, Belarus, Kazakhstan and Kyrgyzstan), RBC reported.

The EEC says in a letter sent to the presidential administration that the introduction of distant sale is a step towards the liberalization of the market, but on condition that it applies to all alcoholic beverages, including those produced by other EEU member-states.

"The introduction on a permanent basis of regulation with regard to distance retail sales of exclusively Russian wines, fortified wines, sparkling wines will have signs of non-compliance with the provisions of the EEU treaty," the EEC said.

Head of Wine Retail information center Aleksandr Stavtsev believes that only Armenia could be the beneficiary of online sales of alcohol to the EEU countries.

"Despite the significant production of wine, the country has difficulties with the promotion of products on the Russian market. It has a rather high cost due to the specifics of high altitude viticulture and the involvement of a significant amount of contract production, which means that this product needs a specific sales channel," he explains.

Vadim Drobiz, director of the Center for Research of Federal and Regional Alcohol Markets agrees with this assessment , saying that discussions on creating a single alcohol market has been going on since 2012, but apart from harmonization of excise rates between the member countries, there has been no progress so far. --0--