Overview: Russia has increased import duties on spirits imported from designated “unfriendly” countries to 35%, with a minimum tariff of 5 euros per liter, according to Interfax newsagency reporting. The new regulations apply to whiskey, rum, gin, liqueurs, brandies, tinctures and undenatured ethyl alcohol.
The Full Story
Approved on Oct. 31, the tariffs will remain in effect through Dec. 31, 2027. The import duty previously stood at 20%, with a minimum tariff of 3 euros per liter. Russia maintains a list of 49 countries designated as “unfriendly,” including EU member states, the U.S., U.K. and other countries that imposed sanctions on Moscow after the 2022 invasion of Ukraine.
Alcohol industry experts previously told the newspaper Kommersant that the tariff increase will likely pass through to consumer retail prices once existing stocks run dry. They also warned that, while the import duty hike aims to boost demand for Russian-made spirits, domestic producers may still see limited sales growth as alcohol consumption gradually wanes. Russia’s 2027-29 draft budget estimates that the liquor tariff hike will generate an additional 10 billion rubles ($122 million) for the federal budget next year, according to Interfax.
What This Means
The policy aims to boost demand for Russian-made spirits. However, experts warn that domestic producers may still see limited sales growth as alcohol consumption gradually wanes. The import duty hike is expected to impact consumer retail prices once existing stocks run dry.
Consumer Takeaway
This news offers the drinker information regarding market availability and pricing shifts for imported whiskey, rum, gin, liqueurs, brandies, tinctures and undenatured ethyl alcohol from the 49 designated countries.
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