Russia's environmental watchdog could raise the question of seizing the property of the Moscow-based Ochakovo brewery if tests confirm the enterprise is responsible for polluting a nearby river, a deputy watchdog head said, according to RIA Novosti, July 9.

"If tests show that drains emptying into the Neverka River belong to the Ochakovo brewery, there are two options - to demand that damage be compensated, or, as stipulated by law, to confiscate the cause of the offense, that is, its property," Oleg Mitvol said, adding that such measures had not been used before.

The Federal Service for the Oversight of Natural Resources suspended the operation of the brewery Wednesday for five days over its alleged environmental violations. On Friday, Mitvol said he asked a court to suspend the Ochakovo operation for 90 days.

Mitvol said the tests would be ready Friday.

Representatives of Ochakovo, which also produces kvass, mineral waters, alcoholic beverages, wine, vodka and liqueurs, called the suspension decision premature.

Earlier it was reported that residents of Moscow's western districts near the Ochakovo brewery filed numerous complaints that the small rivers Neverka and Setun smelled of beer.

Czech brewery Budejovicky Budvar sold 319,737 hectolitres of beer in H1 2007, 11 percent more than a year ago, media agent Katerina Kocianova told CTK, July 10.

Sale of alcohol-free beer grew by 55 percent. Alcohol-free beer, however, accounts for just 2 percent of the brewery's total beer output.

Budvar representatives said the brewery's H1 results were almost four times better than the development of the country's entire beer market which grew by 3 percent according to estimates of the Czech Brewing and Malting Association.

Budejovicky Budvar is the third largest Czech brewery and a leading beer exporter.

Last year, it exported a record 556,000 hectolitres, up 7 percent year-on-year. Output rose by 5 percent to 1.151 million hectolitres.

Gross profit was up 15 percent at Kc267.2m in 2006.

Budvar has invested about Kc3bn in modernisation since 1991.

South America disposes of a malting capacity of 1.6 million tonnes. In spite of the recent construction of two new malthouses in Argentina the increased beer output has led to an acute shortage of malt.

Australia can export 600,000 tonnes per year, it is reported to be well sold for 2008. China has entered the export market in a modest way, having sold this year to Taiwan, SE Asia and the Russian Far East, the total quantity may come close to 100,000 tonnes.

Russia and Ukraine construct new capacities of 200,000 and 150,000 tonnes respectively. They aim at complete self-sufficiency, but the fast increase of Russian beer sales may still necessitate imports in the future.

Russia increased barley imports to 142,500 tonnes for $33.2 million in the first five months of 2007 from 74,000 tonnes for $11.6 million in the same period of 2006, the Federal Customs Services said, according to Interfax News Agency, July 9.