Russian-owned Borjomi Georgian mineral water giant ceases production

Georgia: IDS Borjomi Georgia, a Russian-owned Georgian mineral water company, said today that operations in both of its Georgian plants had been halted due to "challenging circumstances" surrounding Russia's conflict in Ukraine.

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Russian-owned Borjomi Georgian mineral water giant ceases production
Russian-owned Borjomi Georgian mineral water giant ceases production

Georgia: IDS Borjomi Georgia, a Russian-owned Georgian mineral water company, said today that operations in both of its Georgian plants had been halted due to “challenging circumstances” surrounding Russia’s conflict in Ukraine.

The Russian-owned Georgian mineral water company said in a brief statement that the IDS Borjomi is already in a difficult situation in key export destinations — presumably, Russia and Ukraine and it was compounded by restricted access to its bank accounts, which “depriving the company of the possibility to receive foreign currency revenues and settle with creditors.”

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Moreover, the mineral water company stated it had continued operations up until now with hopes that the situation would substantially enhance. “We hope that the circumstances will improve soon, and we will have the chance to continue functioning,” it added.

In Georgia, the firm produces Borjomi, Likani, and Mitarbi sparkling mineral waters, as well as Bakuriani still natural water. According to Labor, a labour union representing employees in the agriculture, trade, and industrial sectors, the Borjomi companies employ over 400 people.

Furthermore, the labour union’s leader, Giorgi Diasamidze, told a local News channel today that discussions between employees and management were underway to negotiate a settlement, but he declined to provide any additional details.

IDS Borjomi Georgia is a subsidiary of IDS Borjomi International, which is based in Curacao, an offshore tax haven in the Dutch Caribbean.

The Russian Alfa Group has had a majority stake in IDS Borjomi International since 2013. A Russian-Israeli businessman, Mikhail Fridman, has founded this group.

Alfa-Bank, a subsidiary of Alfa Group, has been hit with sanctions from the United States and the United Kingdom over the war in Ukraine. It is also the largest private-owned Bank in Russia.

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