Borjomi stops producing water due to sanctions

Author:
Oleksiy Yarmolenko
Date:
Borjomi stops producing water due to sanctions

Borjomi

Georgian mineral water producer Borjomi has been forced to shut down two of its plants due to sanctions. 60% of this company belongs to the Russian consortium Alfa Group, whose owners are subject to Western restrictions.

The public broadcaster of Georgia writes about it.

"The difficult situation in the main markets of the companyʼs products was exacerbated by limited access to bank accounts, which closed the companyʼs ability to receive foreign exchange earnings and settle with creditors," the company said in a statement.

Borjomi stated that since the beginning of the war in Ukraine it has had serious problems with its activities and tried to resolve the crisis, but failed, and therefore the two plants have been suspended since April 29.

The owners of the Alfa Group consortium are Russian oligarchs Herman Khan, Mikhail Friedman and Alexei Kuzmichev, against whom Western sanctions have been imposed.