Azerbaijan's Shaki Sharab LLC to be privatized by subsidiary of Russian Abrau-Durso group

Economy Materials 30 December 2021 17:33 (UTC +04:00)
Azerbaijan's Shaki Sharab LLC to be privatized by subsidiary of Russian Abrau-Durso group

BAKU, Azerbaijan, Dec. 30

By Nazrin Israfilova - Trend:

Azerbaijan’s winery company Shaki Sharab LLC will be privatized by AzAbrau LLC, a subsidiary of the Russian Abrau-Durso group of companies in the country, Trend reports via the Azerbaijani Ministry of Economy.

The respective agreement was signed between the subsidiary and the State Committee on Property Issues under the ministry.

Previously, AzAbrau became the winner of the investment tender for the winery company’s privatization, announced by the committee.

In accordance with the agreement, the winner of the tender undertook to pay 1.9 million manat ($1.12 million) to the state budget and implement an investment program worth about 4.5 million manat ($2.6 million).

The subsidiary shall also ensure payment of debts in the amount of 535,000 manat ($314,710) to the state budget, the State Social Protection Fund, as well as to creditors and employees.

AzAbrau plans to produce elite and dessert grape wines in the Shaki district, which is one of the local centers of viticulture.

In the near future, planting of own vineyards is also planned. The local varieties of Madras and Bayanshir, which grow only in this region, engage particular interest.

The territory of "ASK Shaki Sharab" LLC is 6 hectares. The plant is capable of producing 2.6 million bottles of wine per year. "Abrau Dyurso" PJSC, first of all, plans to supply Azerbaijani wines to the Russian market, as well as expand supplies to other markets.

The privatization of the enterprise by "Abrau-Dyurso" being the well-known company in the field of winemaking is of particular importance for the development of viticulture and winemaking in Azerbaijan, the introduction of modern technologies and the creation of new jobs.

"For us, this is another important step in expanding geography and implementing a strategy to enter international markets. Azerbaijan is a well-known wine-making region. In many respects, the development of wine-making is helped by a unique mild climate,” Oleg Titov, president of the group of companies, said.

“Penetration of frosts in Azerbaijan is hindered by the Caucasus Mountains, and a hot, but not dry summer allows the grapes to fully ripen. The local grape varieties are distinguished by their originality and unique taste. We see great prospects in the export potential of wines produced here," added the CEO.

The group of companies has extensive experience in the field of winemaking and exports its products to more than 20 countries.