Riga Balm Faces Disappearance Over Debt Crisis
Latvijas balzams, the producer of the legendary Riga balm, faces potential disappearance from sale due to severe financial troubles, including a debt of over 65 million euros, with its parent company controlled by oligarch Yuri Shefller, who was labeled an extremist in Russia in 2024.
Consensus
- Latvijas balzams is facing financial collapse.
- The company produces Riga balm and champagne.
- Latvijas balzams has a debt of 65.26 million euros to creditors and Latvian authorities.
- The company's balance on March 31 was 38,000 euros.
- The company incurred a loss of 1.4 million euros in the first quarter of 2026.
- 89.99% of Latvijas balzams is controlled by Yuri Shefller's alcohol business group.
- Related companies in the group owe Latvijas balzams over 111 million euros.
- Yuri Shefller was labeled an extremist in Russia in 2014 and his assets were nationalized.
- The company's financial issues have led to concerns about the product's future availability.
Points of divergence
- The company's debt is equivalent to about 6.5 billion rubles. — riamo
- The company incurred a loss of 1.4 billion euros in the first quarter of 2014. — tg_bazabazon
Coverage (2 sources)
- Riga balm may disappear from sale — РИАМО
- Legendary Riga balm under threat of extinction — vodka magnate Yuri Shefler's company owes more than 65 million... — Baza