The Russian wine market is facing significant price hikes, with imported wine costs rising by an average of 40% from February 2024 to February 2025.
The sharpest increases have been observed in wines from "unfriendly" countries, which have been subject to elevated import duties since mid-2024. In response, Russian importers are shifting focus to Latin American and South African wines, yet these alternatives are also experiencing price inflation due to broader economic factors. Experts now warn that the market may contract as consumers seek more affordable options.
The Impact of Tariff Hikes on Imported Wine
In July 2024, the Russian government imposed a 25% tariff (with a minimum of USD 2 per liter) on wine from "unfriendly" nations, up from the previous 20%. This move has significantly impacted the cost of wines from the European Union and other key suppliers. Wine trading company Fort reports that there are now virtually no foreign wines available in Russia for less than RUB 1,000 per bottle. Aside from tariffs, rising excise duties and currency fluctuations have further strained the market.
Declining EU Imports and New Supply Chains
Official data from Eurostat reveals a steep decline in EU wine imports, down by one-third in 2024 to 160,600 tons, valued at EUR 532 million. As a result, importers like Fort and Ladoga are diversifying their portfolios. Fort increased its wine imports from Chile, Argentina, and South Africa by 30% and is exploring options from Turkey, Greece, Syria, and Cyprus. Meanwhile, Ladoga reported a 55.8% surge in Latin American wine sales and a 6.4% increase in imports from Georgia. Some importers have even begun sourcing Brazilian Prosecco to compensate for losses in European sparkling wine supply.
Rising Domestic Wine Prices and Production Challenges
Despite the shift toward domestic wines, Russian producers are also facing price pressures. Several wineries, including Ladoga’s suppliers, have already implemented price hikes ranging from 9% to 12% since late 2024. A key factor is the increased excise tax on wine, which rose from RUB 108 to RUB 113 per liter at the start of 2025. Additionally, many Russian wineries rely on imported equipment, which has become difficult to repair or replace due to trade restrictions.
A poor grape harvest in 2024, except in Dagestan, has further contributed to the price surge. Industry analysts note that limited competition due to the reduction of imported wines is allowing Russian wineries to raise prices without major resistance from the market.
Market Contraction and Consumer Shifts
With imported and domestic wine prices climbing, experts predict a downturn in overall wine consumption. According to Pavel Shapkin, head of the Center for the Development of National Alcohol Policy, higher prices will likely push consumers toward cheaper alcoholic beverages, such as beer or cider. Fort CEO Alexander Lipilin supports this view, suggesting that beer consumption could see an uptick as wine becomes less accessible to price-sensitive buyers.
As Russia's wine market undergoes these structural changes, both importers and local producers face new challenges. The ability of consumers to absorb these price hikes will be a key determinant of the market’s future trajectory.
Source: Kommersant