Belarusian court ruined biggest Ukrainian beer importer

A case against Aramis and Co was heard at a trial in Minsk.

The company distributor went to law to appeal a decision of the financial militia, blocked the account of Aramis and Co and imposed 5-billion-ruble sanctions on the company. According to BDG, the court took the side of the financial militia and obliged the importer to pay the 5-billion-ruble sanctions. The biggest Belarusian importer of Ukrainian beer has found itself on the verge of bankruptcy.

The trend at the Belarusian beer market f the recent years was increasing beer imports. More than 6mln dekalitres of beer were imported in Belarus in 2006, almost 10mln in 2007, more than 12mln in 2008. 99% of the imported beer comes to Belarus from Ukraine and Russia.

The volume of Ukrainian beer delivery to Belarus has increased significantly. In 2008, 4.3mln dekalitres of beer were imported from Ukraine, which is 2.4-fold more than in 2007. In spite of the Belarusian ruble devaluation, which affected the import, deliveries of Ukrainian beer continue to grow in 2009.

Aramis and Co was the biggest importer of Ukrainian beer in Belarus. This company’s policy defined the status of Ukrainian beer in Belarus. Aramis and Co imported about 90% of the whole volume of Ukrainian beer in the country, so, the market position of the Ukrainian beer producing plants depended on the company.

Taking into account that fact that the biggest Ukrainian breweries preferred to deliver beer in Belarus via Aramis and Co, the Belarusian importer did its work well. The fact that interests of Obolon and Slavutich, competitors in Ukraine, were represented by the same company didn’t confuse them. Obolon and Slavutich were satisfies with cooperation with Aramis and Co as their rate on the Belarusian beer marker was showing growth.

Aramis and Co faced difficulties in spring 2009. Stardatization bodies told the company-importer didn’t have the right to sell beer “Obolon Svetloe” bottled in the so called “fire extinguishers” in Belarus. Though “Obolon Svetloe” was certified in Belarus, the certification bodies insisted that the Ukrainian beer bottled in containers under a fantasy name “fire extinguishers” should be certified separately.

Belarusian retail chains learnt this summer that Aramis and Co was being audited. The result of the audits was a decision of the Belarusian financial militia to block the accounts of the company and impose 5-billion-ruble sanctions on the company. The sanctions were calculated on the result of two-year selling “Obolon Svetloe” under a fantast name “fire extinguisher” in Belarus.

Aramis and Co claims it didn’t violate the Belarusian law, because beer “Obolon Svetloe” bottled in containers under a fantasy name “fire extinguisher” was certified. The company-importer made an attempt to appeal against the decision of the financial militia in court.

On September 25, the court delivered a verdict, upholding the decision of the financial militia on recovery 5 billion rubles from Aramis and Co. A representative of Aramis and Co said on Monday the sum of the sanctions places the company on the verge of bankruptcy. He noted the situation is even more complicated, because the company is unable to pay salaries for August.

“The financial investigation department didn’t allow us to transfer salaries for August to our staff from the blocked accounts. Our company has 250 employees. Unfortunately, they have all chances to meet unemployment,” the administration of Aramis and Co said about the situation. The company is going to continue defending its rights in court.

“We are going to appeal to the Supreme Economic Court. We’ll continue to struggle, we won’t give up,” the Aramis and Co representative concluded.