Armenia and Georgia Resolve Brandy Transit Dispute, Ensuring Smooth Trade Route

YEREVAN/TBILISI – After weeks of significant disruptions, Armenia has largely resolved the long-standing issue of its brandy exports transiting through Georgia to Russia. The breakthrough comes after high-level negotiations between Armenian and Georgian officials, leading to a mutually acceptable agreement for the unhindered flow of goods.

For over a month, Georgian customs services had been detaining trucks loaded with Armenian brandy, sending samples for laboratory analysis. This caused considerable frustration among Armenian alcohol producers, who complained of lengthy delays at the border, a problem they stated was unprecedented in 20 years. Despite the goods being in transit to Russia and other countries and not intended for the Georgian market, the delays persisted. The situation escalated to the point where Armenian producers held protests outside the Georgian embassy in Yerevan, and Armenia's State Revenue Committee temporarily suspended the passage of brandy trucks into Georgia due to the significant congestion.

The transit route through Georgia is critically important, serving as essentially the only land corridor for trade between Armenia and the Russian Federation.

Armenian Minister of Economy Gevorg Papoyan has been at the forefront of these efforts. Following a visit to Tbilisi in late June, where he led an Armenian delegation and met with top Georgian officials including First Vice Prime Minister Levan Davitashvili and the head of the State Revenue Service Irakli Beraia, an initial agreement was reached. On June 23, 55 trucks loaded with Armenian brandy were released from the "Gezi" customs terminal. The agreement also outlined a phased release plan for an additional 72 trucks within the following seven days, and then 24 more.

Confirming significant progress, Minister Papoyan announced on July 30 that 27 trucks carrying Armenian brandy had successfully departed from the Georgian customs terminal GEZI towards Russia on July 29. While one additional truck did not pass inspection, the overall movement signals a major step forward. Papoyan expressed gratitude to the affected companies for their patience and commitment to producing high-quality products.

Looking ahead, both sides have committed to ensuring the unhindered transit of bottled brandy through Georgian territory. Stable and mutually acceptable rules have been developed for this purpose, which Minister Papoyan noted would soon be presented to business representatives. A working group has also been formed to continuously address any future export-related issues, aiming to establish a predictable and smooth process for Armenian brandy exports.