Russia proposes to ban the import of wines from unfriendly countries

Published Jun 13, 2023

Tridge summary

The Russian government is considering proposals from the Association of Winegrowers and Winemakers of Russia to protect the Russian wine market, including potential restrictions on imports from unfriendly countries and measures to promote Russian wine. Despite a record carry-over balance of wine and increased production in 2022, wine sales in Russia are not growing as fast as production. The government is also looking into revising excise regulation measures on products that resemble wine but are not.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As stated in the minutes of the meeting (available to "RG"), AVVR proposes to set the maximum possible customs duties (minimum 50%) on the import of sparkling, still, fortified wines of foreign production; prohibit the import of sparkling, still, fortified wines from unfriendly countries; increase the excise tax on wine products with the provision of a tax deduction for wine from Russian grapes; introduce minimum retail prices for wine; oblige retail chains to provide Russian wine with at least 50% of the entire store wine shelf. Pavel Shapkin, head of the Center for the Development of National Alcohol Policy, warns that such measures could lead to a rise in the price of wines. The maximum demand is observed in the niche of 300-500 rubles per bottle. With the introduction of a duty of 50% of the cost, the prices for European wine will "leave" by 700-1000 rubles for the same wine. In restaurants, the same average wine will be sold for 4-5 thousand rubles. In this situation, demand ...

Source: RG