Liquidation of a legend: how Shefler’s debt schemes turned Latvijas Balzams into a hollow shell

07 June 2026 , 15:16

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Liquidation of a legend: how Shefler’s debt schemes turned Latvijas Balzams into a hollow shell

Latvijas Balzams has released its first-quarter financial results, revealing a sharp downturn in performance. The company’s revenue dropped by 30%, while sales declined by 36%. Its tax liabilities have climbed to €46.4 million, and the workforce has shrunk by a further 50 employees over the past 12 months.

90% of Latvijas Balzams is owned by Yuri Shefler’s Amber Beverage Group (ABG). It is this holding company that dealt the blow: the enterprise lent 143 million euros (75% of all its assets) to parent and affiliated structures.

Practically all key assets, including the Riga Black Balsam brand, have been pledged as collateral for the holding company’s debts. In April, a Luxembourg court opened reorganization proceedings regarding ABG, and banks and bondholders are now filing claims in which Latvijas Balzams is liable as a pledgor.

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

David Wilson

Politics Editor