The European Union is ready to provide €3 million to Armenia for the country to stop using the name "cognac" when labeling its famous alcoholic products, an agreement on financial support approved by the government on Thursday, June 10 reveals.

The purpose of the agreement is to phase out the use of a specific geographic name.

Armenia should now use the funds to ensure a smooth transition to a new name, develop a new brand for the Armenian drink, advertise and stimulate the use and distribution of the new name, as well as achieve the preservation of the position and competitiveness of the new Armenian brand in foreign markets.

The requirement to relinquish the name "cognac" is envisaged by the Comprehensive and Enhanced Partnership Agreement signed by Armenia and the EU in November 2017, which came into force on March 1, 2021. According to the same document, Armenia should also abandon the name "champagne". The country has been given 14 years in the local market and 25 years abroad to give up "cognac", as well as two years in the local market and three years in the international market for "champagne".