Russia Raises Import Duties on Alcoholic Beverages From ‘Unfriendly’ Countries

Russia will raise import duties on alcoholic beverages from countries it considers “unfriendly” starting in May. The new rate will be about €5 per liter, a significant increase aimed at supporting the federal budget and protecting domestic producers. This move marks the second duty hike in less than two years. Since September 2024, Russia has imposed a 20% import duty on the customs value of alcohol from these countries, with a minimum of €3 per liter of pure alcohol.

The Russian government’s decision comes as local cognac and whisky producers face declining demand since the beginning of the year. Officials hope that higher duties will help these domestic manufacturers recover. However, industry analysts and importers warn that the measure will have broad consequences for Russia’s drinks market.

According to Alkopro Guild, a Russian drinks analysis agency, the increased duty will lead to a noticeable rise in prices for most imported alcoholic beverages. This is expected to result in lower sales of popular imported brands. Ruslan Bragin, head of spirits at Fort, a major Russian wine trading company, said that the higher costs will be passed on to consumers, especially in the low and mid-price segments. He predicts that the share of imported alcohol in these categories will shrink as a result.

Representatives from Ladoga Group, one of Russia’s largest drinks importers, expect that price increases will affect the entire market but will happen gradually as current stocks are depleted. They anticipate that the peak of price growth will occur in the second half of 2026.

Analysts also predict that the range of foreign alcoholic beverages available in Russia will decrease due to the higher duties. Importing liquor into Russia already involves risks such as using third-country intermediaries and requiring prepayment for shipments. With the new duties, distributors are likely to focus only on supplying the most popular brands, further reducing variety on store shelves.

Bragin noted that inexpensive and lesser-known Western brands—especially in gin, liqueur, cognac, brandy, and whiskey—will be most affected by reduced imports because consumers in these segments are more sensitive to price changes.

Some analysts believe that higher duties may push foreign producers to localize their production within Russia or find alternative ways to keep their products affordable for Russian consumers. For example, this spring, local company Alvisa plans to start producing Martini from Bacardi domestically. Previously, Bacardi supplied Martini to Russia from Argentina under license.

Despite these challenges, some international companies have managed to increase their sales in Russia through parallel imports and localized production. In January and February 2026, retail sales for Bacardi and Pernod Ricard grew by more than 20% compared to the previous year.

The new import duty is expected to reshape Russia’s alcohol market by raising prices and reducing choices for consumers while encouraging more domestic production and alternative supply strategies among foreign brands.