The Georgian government will become a co-owner of Borjomi, the countrys iconic mineral water brand, by taking over shares from its sanctioned Russian owners, the countrys Prime Minister Irakli Garibashvili said at a government meeting Monday.Borjomi, one of Georgias most recognizable brands, had been majority owned by Russias Alfa Group since 2013.
Alfa was hit by Western sanctions following Moscows invasion of Ukraine on Feb.
24, forcing IDS Borjomi International to suspend production due to financial difficulties.At the government meeting, IDS Borjomi revealed that Alfa would transfer a 7.73% share in the company to the Georgian government free of charge, the Agenda.ge news website reported.Alfa Group will cease to be the controlling shareholder following the deal.The company also said the number of shareholders on its Board of Directors would be reduced from eight to two and that the Chairman of the Board will be a government representative.Garibashvili said the deal had been agreed with Georgias international partners and through consultations with British-based regulators.He also pledged to resolve ongoing issues between the company and some 400 Borjomi plant workers, who went on strike in May over claims that their salaries werent being paid and that 50 fellow workers had been illegally fired.