Russian-owned Georgian mineral water giant IDS Borjomi Georgia said today it has suspended work in both of its factories in Georgia over “difficult circumstances” surrounding Russia’s war in Ukraine.
In the brief statement, IDS Borjomi stressed that the already difficult situation in its key export destinations — presumably Russia and Ukraine — was compounded by restricted access to its bank accounts, “depriving the company of the possibility to receive [foreign] currency revenues and settle with creditors.”
The mineral water giant said it had continued operations up until now with hopes that the situation would substantially improve. “We hope that the circumstances will improve in the near future and we will have the opportunity to resume functioning,” it added.
The company produces sparkling mineral water brands Borjomi, Likani, Mitarbi as well as still natural water Bakuriani in Georgia. There are about 400 employees at the Borjomi factories, Labor, a labor union for workers in the agriculture, trade, and manufacturing sectors has reported.
Giorgi Diasamidze, head of the labor union told Formula TV today that talks were underway between the workers and the management to reach a settlement but refrained from providing further details.
The IDS Borjomi Georgia is a subsidiary of IDS Borjomi International, registered in Curacao, in the Dutch Caribbean, an offshore tax haven.
Since 2013, the Russian Alfa Group has held a majority stake in the IDS Borjomi International. The Group was co-founded by Mikhail Fridman, a Russian-Israeli tycoon.
Alfa Group’s subsidiary, Alfa-Bank, the largest private-owned Bank in Russia has been hit with sanctions from the U.S. and the UK over the war in Ukraine.
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