A report in the Russian business daily Kommersant revealed that Laurent Pilet, who has been the head of the operation since 2019, is being transferred to another region. Ignaty Arakelyan, the former Armenian Agriculture Minister who has successfully managed the Yerevan Brandy Factory, a subsidiary of the French conglomerate, will oversee the winding down of the business.
Sources quoted by Kommersant suggest that a majority of the Pernod Ricard team has already left, and the remaining employees may also depart before the end of the month.
A Moscow market insider has expressed concerns about the French conglomerate maintaining an office in Moscow while its brands, including Jameson, Chivas, Absolut, and Beefeater, are being imported through unofficial channels via third countries.
“It’s not a good look for these major Western multinationals to have a presence in Moscow while their products are being covertly brought in through the back door,” said the market insider.
When approached for comment, a spokesperson for Pernod Ricard told the Irish Independent that they were unable to provide information on local matters. However, they did confirm that the former CEO of Pernod Russia has been appointed to a new role in a different region as part of the company’s annual internal reshuffling.
Pernod Ricard, the owner of Jameson, faced widespread international condemnation in April this year and had to suspend exports of its international brands to Russia. However, an investigation carried out by the Irish Independent this month reveals that significant stocks of Jameson, Bushmills, Tullamore Dew, Baileys, and other Irish spirits brands have now reappeared in major Moscow supermarkets and off-licence chains. Furthermore, Guinness and Kilkenny are once again being served on tap at several of the city’s renowned Irish pubs after a year-long absence.
Recently, an Irish businessman shared photos from Gastronom No. 1, an upscale store at the GUM mall on Red Square, showcasing a wide selection of Irish whiskeys for sale, including Jameson, Bushmills, and Teeling.
Supplies of Western spirits and beer are now being routed through neighboring Kazakhstan and Georgia. Customs records from the Trade Data Monitor platform indicate that alcohol exports from Georgia to Russia have surged by over 120% since the Ukrainian conflict began.
Chris Weafer, CEO of consulting firm Macro-Advisory, explained that the availability of Irish products in Moscow, despite the official ban, doesn’t mean that the manufacturers are flouting sanctions or ignoring their own voluntary restrictions. Moscow operates a “parallel import” scheme, which allows Russian importers to source products from other markets and legally sell them in Russia. This scheme provides protection against actions such as copyright infringement, offering legal safeguards in Russian courts.
In summary, Pernod Ricard is undergoing changes in its Russian operations, with the current head being reassigned and the former Armenian Agriculture Minister overseeing the closure. Concerns have been raised about the conglomerate’s presence in Moscow while its products are being imported through unofficial channels. Despite the ban, Irish spirits are readily available in Moscow, sourced through neighboring countries. The “parallel import” scheme allows for legal protection against copyright infringement.
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