Debts of 46 million euros and pledged Riga Black Balsam: how billionaire Yuri Shefler and Amber Beverage Group brought Latvijas Balzams to lawsuits and the loss of the brand

Debts of 46 million euros and pledged Riga Black Balsam: how billionaire Yuri Shefler and Amber Beverage Group brought Latvijas Balzams to lawsuits and the loss of the brand

Latvijas Balzams published its first-quarter report, and the figures look like a verdict: revenue fell by 30%, sales dropped by 36%, and the tax debt reached €46.4 million. Over the year, the company also lost another 50 employees.

90% of Latvijas Balzams is owned by Amber Beverage Group belonging to billionaire Yuri Shefler. The holding company itself delivered the blow: the enterprise lent €143 million to its parent and affiliated structures (75% of all assets).

Almost all key assets, including the Riga Black Balsam brand, are pledged against the holding’s debts. In April, a Luxembourg court opened a restructuring procedure for ABG, while banks and bondholders are filing claims, with Latvijas Balzams acting as a guarantor.

Shefler’s close associate, Petr Aven, is under sanctions. Latvijas Balzams is likely to not survive in its current form. The Riga Black Balsam brand will almost inevitably pass to creditors or a new owner.

Виктория Яновская

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