In a surprising turn of events, wine supplies from European Union (EU) countries to Russia almost doubled in July 2024 compared to June, according to data reported by RIA Novosti, citing Eurostat.
A total of 12.1 thousand tons of wine were exported to the Russian market in July, marking a sharp increase in imports despite ongoing political and trade complexities between the EU and Russia.
Surge in European Wine Exports
All major European wine-exporting countries contributed to this surge. Spain saw the most dramatic increase, expanding its wine shipments by 2.4 times month-on-month, reaching 980 tons. Latvia followed closely, increasing its exports by 2.2 times to 1.4 thousand tons. Other leading wine producers, such as Italy, Portugal, and Germany, also saw significant growth. Italy exported 4.9 thousand tons of wine, Portugal shipped 1.3 thousand tons, and Germany supplied 800 tons — nearly doubling their respective exports compared to June.
Sparkling Wine Leads the Charge
While the overall volume of wine exports from Europe increased, sparkling wines saw the highest growth rate. Exports of European sparkling wines to Russia surged by 2.4 times, outpacing other wine types, which grew at a rate of 1.8 times. This spike in demand for sparkling wines reflects changing consumer preferences in Russia, where premium wine and celebratory drinks have become more popular, despite the country’s economic challenges.
Regulatory Changes Slowing Imports
The surge in wine imports comes amid tighter regulatory scrutiny by the Federal Customs Service (FCS) of Russia, which introduced new requirements for imported wine documentation in the spring of 2024. These regulations have led to significant delays in processing shipments at customs, affecting the time it takes to bring wine to market.
The increased inspection efforts are part of a broader move by Russian authorities to combat the influx of low-quality wine products, often referred to as "shmurdyak" — a derogatory term for poor-quality, mass-produced wine. The Russian government has been locked in a dispute over how to regulate these imports, with officials aiming to protect consumers from substandard products while ensuring high-quality imports continue to enter the market.
Implications for the Russian Wine Market
The doubling of European wine imports to Russia comes at a time of evolving consumer preferences and economic uncertainty. Despite the regulatory challenges, Russia’s demand for European wines — particularly sparkling varieties — continues to grow. This trend is noteworthy given the strained relations between the EU and Russia, and the general expectation that trade between the two would decrease due to political and economic sanctions.
With European importers still willing to navigate the more stringent customs checks, Russia remains an important market for EU wine producers. This growth also highlights Russia’s reliance on European wine, despite efforts to promote domestic wine production in recent years.
The Role of "Shmurdyak" in Regulatory Changes
The crackdown on "shmurdyak" has been a key factor in shaping Russia’s wine import policies. Russian authorities have grown increasingly concerned about the rising volume of low-quality wine entering the market, which they argue undermines both domestic producers and the reputation of higher-end imports. In response, the Federal Customs Service implemented stricter rules for verifying the origin, quality, and proper labeling of imported wines.
These changes, while increasing processing times, appear to have had little impact on overall import volumes. The continued influx of European wines suggests that consumers are willing to pay a premium for quality products, and European producers remain keen to meet that demand.
Outlook for European Wine in Russia
The sharp rise in European wine exports to Russia in July could signal a broader trend in the months ahead, provided that importers can continue to navigate the increasingly complex regulatory environment. With demand for premium and sparkling wines rising, European producers have an opportunity to further solidify their presence in the Russian market.
Source: Gazeta.ru