Wine imports into Russia during the first nine months of 2024 have undergone a significant transformation, reflecting not only the nation’s evolving geopolitical allegiances but also broader economic recalibrations driven by tariffs, exchange rate volatility, and domestic policy interventions.
According to data shared by Luding Group and corroborated by key market players such as AST and Fort, the total volume of imported wine stood at 260.2 million liters, representing a year-on-year contraction of nearly 11%.
This contraction does not represent a uniform decline across the board. Rather, it underscores a strategic realignment of Russia’s sourcing geography. Imports from so-called "friendly countries" — i.e., those not participating in Western sanctions against Russia — increased by over 3% to reach 98 million liters, while imports from "unfriendly countries" plummeted by 21% to 162.2 million liters. This shift is no mere statistical anomaly but a reflection of long-term structural change in Russia’s wine import matrix.
Protectionism and Price Signals: The Macroeconomic Context
One of the most significant drivers of this reorientation is the Russian government’s protectionist economic agenda, bolstered by increased import duties on wine from unfriendly nations. As of August 2023, customs tariffs on wine from these countries rose from 20% to 25% of the customs value, with a minimum duty of USD 2 per liter, up from USD 1.5. This marked adjustment, coupled with the depreciation of the Russian ruble and inflationary pressures, exponentially increased the cost basis for imported wines — especially those from European suppliers such as France, Spain, and Italy.
According to Fort Wine Company’s executive director Alexander Lipilin, the price of wines from unfriendly countries surged by 50% year-on-year, with a doubling in price over the past two years. Even wines from friendly countries were not exempt, increasing by approximately 25%, while domestic wines adjusted upward by 15–20%. As a result, price-sensitive consumers have begun to gravitate toward affordable alternatives from countries such as Georgia, South Africa, and Moldova — or toward domestic options.
Still Dominant: The Breakdown of Import Categories
Still wine continues to dominate the Russian market, accounting for 82.8% of total wine imports (215.3 million liters). Sparkling wines, while culturally significant and seasonal, made up only 44.9 million liters. The majority of sparkling wine (almost 97%) still arrives from unfriendly countries, though the sharp 41% decline in imports from France signals a meaningful retreat of Champagne from Russian shelves.
Interestingly, while overall wine imports declined, still wine from Georgia grew by 7%, and Chilean imports jumped by 33%. Even more dramatic was South Africa's 99% surge, reaching 16 million liters, making it one of the fastest-growing exporters to Russia. In contrast, Spain and Portugal saw declines of 33% and 15%, respectively, with Italy, still the largest exporter, dropping 20%.
Sparkling wine imports told a similar story. Italy maintained its lead but declined by 5%, while Chile registered a 219% increase, capitalizing on the vacuum left by Western producers.
The Shifting Geography of Wine: From Old World to Strategic Partnerships
Although traditional European wine-producing nations remain influential, their dominance is increasingly challenged. Italy retained its top position, exporting 76.2 million liters, yet this marked a decline from 82.8 million liters in 2023. The growing presence of non-traditional partners — including Turkey, Cyprus, Greece, and Syria — reflects both a diversification strategy and a political necessity.
Fort’s expanded portfolio now includes wines from all these emerging origins, with imports from Chile, Argentina, and South Africa growing by 30% year-on-year. These countries benefit not only from lower customs duties but also from the fact that their producers are actively seeking new markets, especially in the wake of global disruptions such as supply chain bottlenecks and reduced EU demand.
Consumer Trends and Demand Elasticity
The shift in import composition also intersects with changing Russian consumer behavior. Traditionally loyal to Old World appellations, many Russian consumers are now more price-sensitive and open to experimentation. Still, consumer inertia — particularly in the premium segment — persists. “In sparkling wine, everything is the same: we admire pink, we drink white,” quips Vladimir Kosenko of Luding Group, underscoring the gap between perception and purchasing decisions.
In the still wine segment, red and white wines are now nearly equal in share, with white wine increasing by 3.5 percentage points to reach 50%, aligning with a broader culinary trend favoring lighter dishes. Sparkling wines remain heavily skewed toward white (89.3%), followed by rosé (10.4%) and a negligible proportion of red.
Price Segmentation and Retail Strategy
Pricing data reveals a bifurcated wine market. In the premium tier, 65% of Fort’s imported portfolio now retails above 3,000 rubles per bottle, whereas domestic wines dominate the mid-range (1,000–3,000 rubles). However, in terms of volume sales, 45% of imported still wines fall in the 400–600 ruble range, while 32% are in the 600–1,000 ruble segment. Sparkling wine prices follow a similar pattern, with the lowest average prices offered by producers from Moldova, Abkhazia, Hungary, and Belarus.
This price polarization underscores a growing trend: premium consumers continue to purchase imported wines, but the mass market is increasingly satisfied with lower-cost, regional alternatives.
Looking Ahead: Stability with Strategic Shifts
Market participants broadly agree that wine imports in Russia have reached a new equilibrium, shaped by both macro policy instruments and market pragmatism. The consensus is that imports from friendly countries will continue their slow but steady expansion, largely because of tariff advantages and logistical accessibility.
Lipilin anticipates a continued rise in Georgian imports due to zero-tariff status, while Kosenko notes that while “new exotic origins” will appear in portfolios, they are unlikely to significantly disrupt the import structure.
From a broader perspective, Alexander Stavtsev of the Association of Retail Market Experts suggests that future growth hinges on consumer income levels. If household purchasing power rebounds, import growth could resume, especially as global producers — particularly those threatened by reduced U.S. or EU demand — seek new footholds in Eastern markets.
Conclusion: Russia’s Wine Market in a New Era
The Russian wine import sector in 2024 stands as a case study in geoeconomic realignment, where political alignment, tariff regimes, and currency management intersect with consumer behavior and global trade flows. While Europe continues to lead in heritage and perception, market share is gradually ceding to pragmatic alternatives from South America, the Caucasus, and Africa.
The rise of wines from friendly nations — along with the strategic promotion of domestic Russian wines — signals a decoupling from traditional Western suppliers, albeit not a complete severance. In this evolving landscape, success will belong to producers and importers who can navigate the fine balance between price, origin, quality, and perception.
Source: RBC Vino