RUSSIA – Imports of European Union (EU) wine into Russia have reached their lowest level in two decades, with only 126,000 tons imported since the start of 2023.
According to Eurostat, this represents a 25 percent decrease compared to the same period in the previous year. The previous record low for EU wine imports to Russia was in 2004, at 87,000 tons.
Italy has emerged as Russia’s top wine supplier within the EU, capturing a 39 percent share of imports, totalling 49,000 tons, a notable increase that has doubled Italy’s market share. In 2023, Italian wine exports to Russia reached a total value of €158 million (US$167.8M), solidifying Italy’s position.
However, former leading suppliers Lithuania and Latvia have experienced significant declines, with imports dropping by factors of 2.7 and 4.3, respectively. Lithuania imported just 18,000 tons, and Latvia imported 14,000 tons over the past eight months.
Some other EU countries have also managed to grow their presence in the Russian wine market. Poland, for example, increased exports by 70 percent, totaling 13,000 tons, while Portugal tripled its exports, reaching 10,500 tons.
Nonetheless, EU wines represented 37 percent of Russia’s wine imports in 2023, signaling an overall decline in EU market share in Russia.
Outside the EU, Georgia remains Russia’s largest wine supplier, accounting for approximately 20 percent of market share.
Analysts project that wine imports from non-EU countries, particularly in Latin America and South Africa, may increase due to the lack of additional tariffs on imports from these regions.
South Africa has notably increased its exports of white and sparkling wines, while Chile led in 2022, exporting 16.6 million liters—a 10 percent increase from the prior year.
Sanctions and restrictive trade policies between Russia and the EU are some of th contributing factors to the decline in EU wine imports.
The EU implemented a ban on exporting wines priced above €300 (US£318.62) per bottle to Russia on March 15, 2022. However, according to Leonid Rafailov, CEO of AST, one of Russia’s major importers of alcoholic beverages, this restriction had limited impact since premium wines represented only 1 percent of the market.
Additionally, Russia has implemented its own tariff policies on imports from “unfriendly” nations.
In August 2023, tariffs were increased to 25 percent with a minimum charge of US$2 per liter. Initially set to expire at the end of 2023, the tariff increase has been extended through 2024.
While alcohol consumption per capita in Russia is projected to decline to 8.08 liters by 2029, Russia’s ongoing conflict with Ukraine has led to a rise in overall alcohol consumption. In 2023, alcohol consumption reached 2.3 billion liters.
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