The Russian brewer Baltika has said that it is to cut its investment programme by US$50m to $150m for 2003, because of the worsening econmic climate in the beer industry in the country.

The board of directors met on Tuesday and voted to cut next year's invesmtents from US$200m to US$150m. The investment was due to be put into expanding the company's production capabilities.

The remaining money is to be placed in US$75m worth of projects for trimming product cost, including spending on production, transportation and product warehousing. The remaining funds will be put into the modernization of the company's production facilities.

Baltic Beverages Holding holds the controlling (75%) stock interest in Baltika.