Russian authorities are discussing a potential increase in import duties on spirits from unfriendly countries, including whiskey, rum, liqueurs, and cordials, effective January 1, 2026, according to several sources cited by RBC.
One of the options under consideration is to raise the tariff from EUR 3 to EUR 5 per liter, a measure intended to adjust customs policy in line with ongoing economic and political dynamics.
The Ministry of Finance has submitted the proposal for review to the Subcommittee on Customs Tariff and Non-Tariff Regulation, which is currently conducting an impact assessment of last year’s duty changes. The evaluation aims to determine how the previous increase affected both the consumer market and domestic producers before implementing further adjustments.
Officials emphasize that no final decision has yet been made, and the Ministry of Economic Development, which oversees the commission reviewing duty rate changes, continues to analyze the potential consequences.
Background: Recent Changes in Spirits Tariffs
The current duty rate—20% of the customs value, but not less than EUR 3 per liter—was set in September 2024 and is valid until December 31, 2027. However, the rate has already undergone several revisions.
In July 2024, import duties ranged between EUR 1.40 and EUR 1.50 per liter. A month later, authorities introduced a formula linking the tariff to the alcohol content of the beverage—20% of customs value plus EUR 3 per liter of 100% alcohol used. This formula, paradoxically, reduced duties on lower-strength or lower-priced spirits, with importers of a 40% ABV whiskey paying roughly EUR 1.20 per liter, down from EUR 1.50.
To correct this, regulators in September 2024 introduced the current mechanism: a minimum of EUR 3 per liter of the drink itself, closing the loophole and stabilizing import costs.
Market Composition: Domestic Dominance and Remaining Imports
In Russia, vodka and gin are primarily produced domestically, covering nearly 100% and 92% of market demand, respectively. Imports play a larger role only in specific categories such as whiskey, rum, and liqueurs.
Data from the WineRetail information center show that domestic whiskey production now accounts for about 55% of total market volume (excluding bulk raw materials). This represents a major shift compared to 2021, when imports made up over 80% of sales.
The steady reduction in whiskey imports is the result of both the exit of international brands and increased investment in local whiskey production.
- Stellar Group (Old Barrel, Steersman, Veda) tripled its bottling capacity in early 2023.
- Ladoga Group, producer of Tsarskaya vodka and Barrister gin, acquired a whiskey distillery in Stavropol Krai in 2024.
As a result, the share of imported whiskey declined to 45.3% by September 2025, down from 49% the previous year.
Leading Whiskey Brands in the Russian Market
Despite the growing presence of domestic producers, foreign whiskey brands remain popular among consumers.
According to RBC data for 2025:
- Steersman (Russia) – 127,000 decaliters (14.8% market share)
- Fowler’s (Russia) – 14.2%
- William Lawson’s (Scotland) – 11.4%
- Johnnie Walker (Scotland) – 4.3%
- Ballantine’s (Scotland) – 4.1%
- Jameson (Ireland) – 3.2%
- Dewar’s (Scotland) – 2.9%
- Jim Beam (USA) – 2.9%
The top-selling domestic brands have successfully matched or surpassed foreign competitors in volume, reflecting both consumer adaptation and limited foreign supply.
Parallel Imports and the Brands Most Affected
If adopted, the tariff increase will primarily affect brands imported via parallel channels—those that officially left the Russian market but remain available through intermediaries. These include well-known producers such as:
- Diageo (Johnnie Walker, Talisker, Smirnoff, Captain Morgan, Baileys)
- Pernod Ricard (Absolut, Jameson, Ballantine’s, Havana Club, Malibu)
- Mast-Jägermeister (Jägermeister)
The price increase for these products is expected to be moderate—approximately 150–200 rubles per bottle—which analysts believe will not drastically impact premium consumers, whose purchasing behavior is less sensitive to price fluctuations.
However, rising import costs will likely raise overall shelf prices and could indirectly encourage domestic producers to adjust their own prices, as observed in the wine market following previous tariff hikes.
Lessons from the Wine Market
The proposed measures follow a similar path to earlier tariff increases on wines from unfriendly countries.
- In August 2023, import duties on wine rose from 12.5% to 20%.
- Current rates stand at 25%, but not less than USD 2 per liter.
This policy significantly affected low-priced imported wines (under EUR 5 per bottle), leading to a sharp drop in imports—from 15.2 million decaliters to 6.9 million between January and April 2025. As a result, store selections narrowed, domestic wine production grew, and retail prices rose.
Overall, wine sales in Russia fell by 1.4% year-on-year, and sparkling wine sales decreased by 2.9% in the first nine months of 2025.
Market Impact and Industry Outlook
According to Ruslan Bragin, head of spirits at Fort, imported spirits currently account for around 25% of the Russian market, a figure expected to decline to 20% if tariffs are raised.
Importers are reportedly building stockpiles ahead of the potential duty increase, meaning that price effects will likely appear gradually throughout 2026. The most visible impact may be in the low-cost imported spirits segment, where margins are tighter and consumers more price-sensitive.
At the same time, domestic distilleries—many of which have expanded capacity or invested in local whiskey production—could benefit from reduced competition. Still, industry experts caution that tariff implementation details matter, particularly if raw materials and distillates used by Russian producers are also subject to the higher rates.
Furthermore, the classification of spirits—for example, tequila produced in Europe versus Mexico—may raise additional customs interpretation challenges.
Conclusion: Balancing Policy and Market Stability
The proposed increase of import duties from EUR 3 to EUR 5 per liter represents another step in Russia’s broader effort to support domestic alcohol producers and reduce reliance on imports from unfriendly countries.
While the policy may strengthen local industry competitiveness in the medium term, it also carries risks of price inflation and reduced consumer choice, especially in the entry-level imported spirits category.
The government’s final decision, expected by the end of 2025, will determine the pace at which Russia’s spirits market continues its transition toward domestic self-sufficiency.
Source: RBC Vino