It was a fatal mistake of the Bureau National Interprofessional du Cognac to let a wealthy Russian explore Cognac in a way he did: just in 2007 Vadim Varshavsky, State Duma deputy and businessmen who made his money selling assets of coal-mining factories, bought Cognac house Croizet for €15 million. Now, in 2009, he is sought by the three European banks at once – Société Générale, BNP-Paribas and Crédit Suisse. They are looking for him to ask about the credits due, the Russian businessman doesn’t respond to their inquiries since the beginning of September 2009.

Foreign investors are not very welcome in Cognac – French government is very concern to protect the distilled heritage of the region and the “Frenchness” of its Cognac producers. Nevertheless, it made an exception in this rule and trusted that Varshavsky would be able to develop the estate and promote Cognac sales amongst wealthy Russians. They didn’t know at that time that Varshavsky’s Russian debts would total an impressive amount of $4-5 bn in 2009.

Although the commercial director for Croizet denies the debts of the Russian oligarch has something to do with Croizet, it is a serious question if Varshavsky is going to keep his word and show himself – Russian windfall money has an ability to disappear fast.

The French aren’t mistaken being afraid of Russian investments – for example, they might not have ever heard about the huge distilled spirits producer and importer from Moscow – KIN, that publicly bought Domaine des Broix in 2004 and since then actively promotes its produce as “French” (although they are bottled in Russia).