EU Wine Imports Value to Russia Surge Despite Increased Tariffs

According to the Russian news agency and multimedia platform RIA Novoti, Russia imported wine worth EUR 47.1 million from the European Union (EU) in Sep-24. This was the highest import value since Apr-24. This increase occurred despite Russia's decision to raise import duties on wines from "unfriendly" countries, including EU nations.

In Aug-23, Russia raised import duties from 12.5% to 20%, imposing a minimum charge of USD 1.5 per liter (L). This measure was extended through 2024. In early Aug-24, the duties were further increased to 25%, with a minimum charge of USD 2/L. These measures were expected to curb imports from the EU, yet the data indicated mixed results. Since Mar-22, the EU has imposed sanctions on Russia, restricting the export of wines priced higher than EUR 300 per bottle. While such high-end wines account for only about 1% of the market, it negatively impacts trade.

The strong demand for European wines in Russia is driven by their quality and variety. This demand has seemingly outweighed the financial impact of increased duties. Additionally, the timing of the import surge suggests strategic stockpiling by importers, possibly in anticipation of further economic or regulatory changes.

On a country comparison level, the value of France’s wine exports to Russia significantly increased, with Sep-24 figures reaching EUR 1.6 million, soaring from EUR 356 thousand in Aug-24. This showcases a strong recovery in French wine sales. Similarly, the export value of German wine more than doubled to EUR 2.7 million, and Spain increased its export value to EUR 2.4 million, a significant 180% YoY increase.

Italy remains the leading wine supplier to Russia among EU countries, with sales increasing to EUR 19.5 million from EUR 15.5 million in Sep-24 and a 20.51% month-on-month (MoM) increase. As a result, Italian wines totaled EUR 158 million in import value and 49,000 metric tons (mt) in volume. Italy's strong brand recognition and consumer loyalty in the Russian market may have supported this success. Latvia also saw a substantial increase in export value, reaching EUR 10.8 million in Sep-24, a 160% MoM jump, indicating an emerging market.

Figure 1: Russian Import Value of Wines 2019-2023

Source: Tridge, TradeMap

Conversely, Poland was the only major exporter to reduce its wine export value to Russia in Sep-24, with a 14% MoM decrease to EUR 3.7 million. This decline could be due to logistical challenges, trade policy changes, or consumer preference shifts.

Despite increased import duties, EU wine imports in Russia showed resilience. Consumers are expected to turn to non-EU wines as prices increase. However, the Russian wine market will likely continue to grow, driven by strong domestic demand.