Uncovering Illegal Entrepreneurial Activities in Vodka Production

The investigation division of the Criminal Police Department’s unit combating corruption and economic crimes has obtained factual data based on received information regarding illegal entrepreneurial activities involved in vodka production.

According to the materials prepared, it has been established that a registered individual entrepreneur, having acquired a license from the Ministry of Finance for producing alcoholic beverages with 40% alcohol content derived only from fruits and berries—for which the annual state duty is 50,000 AMD—has, instead of conducting legal business, organized and operated the illegal production of vodka, which contains ethyl alcohol derived from fermentation materials, in the communities of Zovuni in Kotayk Province and Marmanashen in Ararat Province. This operation was conducted without obtaining a special permission from the Ministry of Economy, which would be required and costs 15 million AMD annually.

The illegally produced vodka was primarily sold without accounting documentation in various retail outlets across the regions of Armenia, as well as in several locations in Yerevan, with a total of 4,496 batches discovered both in the production facility and the retail points. The state incurred significant damages from the illegal activities, amounting to a total of 15 million AMD in damages related to the licensing alone.

Additionally, another investigation has revealed that the management of a limited liability company operating at 1 Railway Workers St., Masis community in Ararat Province, has similarly engaged in illegal entrepreneurial activity. Despite holding only a special permission from the Ministry of Finance for producing alcoholic beverages with 40% alcohol content or more, for which the annual state duty is 50,000 AMD, they also failed to obtain the necessary special permission for producing alcohol from fermentation materials, worth 15 million AMD annually.

The vodka produced by this company was also sold in various retail outlets across the regions and Yerevan, with a total of 724 batches found during inspections. This operation has likewise resulted in damages of 15 million AMD to the state regarding the license.

Criminal cases have been initiated at the Criminal Police Department’s unit against corruption and economic crimes, and these have been forwarded to the investigative department of the State Revenue Committee.