Armenia’s prominent brandy producer, which relies heavily on the Russian market, could face an uncertain future following the French parent company’s announcement to halt exports of all its international brands to Russia.

The decision by Pernod Ricard, the multinational corporation, is connected to Western sanctions against Moscow and was announced in mid-May.

“We will also cease the distribution of our portfolio in Russia, a process that we anticipate will take some months to complete,” it said in a statement.

Pernod Ricard’s worldwide subsidiaries include the Yerevan Brandy Company, Armenia’s largest brandy maker and wholesale buyer of grapes.

Referring to the case, Armenian Economy Minister Vahan Kerobyan told the deputies on May 18: "I have not yet received official information, but it seems official: the Yerevan Brandy Company will stop its exports to Russia."

The minister assured that the Armenian government will address the expected consequences. However, he did not provide details on specific measures that the government might take.

Avag Harutyunyan, the president of the Union of Winemakers, provided his assessment on the matter, stating that there would be very serious tensions in the market.