Vodka maker Stoli 'furious' with Russia as US companies file for bankruptcy after cyberattack

 

Two U.S.-based subsidiaries of Stoli Group, the vodka producer, have filed for bankruptcy following a crippling cyberattack and prolonged litigation with Russia. Court documents from Dallas reveal that Stoli Group USA has accumulated $84 million in debt. The bankruptcy filing is intended to give the company time to recover from the cyberattack and restructure its debts to protect jobs.

Stoli Group CEO Chris Caldwell explained that the company has been under persistent pressure from the Russian Federation since its inception. "Russia has targeted our business in an attempt to reclaim ownership of privatized vodka brands," Caldwell stated. Earlier this year, both the company and its owner, Yuri Shefler, were labeled by the Russian government as "extremist groups working against Russia’s interests."

The filings also reveal that Russia has accused Shefler of politically motivated criminal charges and has tried to seize Stoli’s assets. Shefler, a billionaire exiled from Russia in 2000 for opposing President Vladimir Putin, has long been at odds with the Kremlin.

Stoli rebranded its U.S. products from "Stolichnaya," meaning "capital city," to "Stoli" in 2022 as a response to Russia’s invasion of Ukraine. The change was part of a broader effort to distance the brand from Putin’s regime. According to Stoli Group’s global CEO, the rebranding highlighted their support for Ukraine, where they also maintain operations. "The safety of our Ukrainian team is a top priority," he emphasized in a news release.

The company has faced additional challenges, including a global boycott of Russian-affiliated vodka. When the war in Ukraine began, U.S. governors ordered the removal of Russian-made spirits from government-run liquor stores.

Despite the financial strain—reported liabilities range between $50 million and $100 million—Stoli’s leadership remains resolute. CEO Caldwell and other executives have characterized their stance as a principled response to the horrors of war. “This is one meaningful way we can show our support for Ukraine,” stated a spokesperson.

The decades-long ownership battle between Shefler’s Stoli Group and Russia’s state-owned Sojuzplodoimport has cost the company tens of millions of dollars globally, compounding their financial challenges. For now, Stoli is focusing on recovery, restructuring, and maintaining its operations.