Russia’s still wine sales fell 4.9% in the first half of 2026.

Retail sales of still wine in Russia fell in the first half of 2026, while sparkling wine sales rose and suppliers from Chile, Argentina, and South Africa expanded their presence at the expense of several European producers, according to market data reviewed by RBC Wine.

The data, provided to RBC Wine by a wine trading company and corroborated by two market participants and industry experts, showed that still wine sales in January through June totaled 29.7 million decaliters, down 4.9% from a year earlier. That is roughly 1.53 million decaliters below the 31.23 million sold in the same period of 2025. Sparkling wine moved in the opposite direction, rising 2.3% to 10.1 million decaliters, or about 227,000 more than a year earlier. A decaliter equals 10 liters.

Russian wine continued to hold the largest share of both segments, but its position slipped slightly. Domestic producers accounted for 59.5% of the still wine market, down 0.7 percentage points from a year earlier, and 70.9% of the sparkling market, down 0.8 points.

In still wine, imports make up about 40% of the Russian market. The largest suppliers by market share in the first half were Georgia at 9.6%, Italy at 5.5%, Chile at 4.7%, Spain at 3.7%, and South Africa at 3.4%. Together with Russian producers, those countries represented nearly 90% of the market.

The strongest gains came from New World suppliers. Sales of Argentine still wine in Russia rose 30.8% to 266,470 decaliters. Chile increased 20% to 1.33 million decaliters, and South Africa rose 10.2% to 978,030 decaliters. By contrast, several European suppliers lost ground. Sales from Spain fell 21.6%, Portugal dropped 14.6%, and France declined 8.8%. Italy, which remains a major supplier, was down 5.6%. Germany was the main exception among European producers, with sales up 9.6%.

Industry participants linked the shift largely to price. Russia applies an elevated import duty of 25% of customs value, with a minimum of $2 per liter, on wine from countries that Moscow classifies as “unfriendly.” That regime has been extended through the end of 2027. Market specialists told RBC Wine that the policy has hit European wine hardest in entry-level and midpriced categories, where price is often the deciding factor for buyers.

Maxim Chernigovsky, an associate professor at the Presidential Academy in St. Petersburg, said the current tariff structure makes further demand shifts toward Russia, Chile, South Africa, Argentina, and other alternative suppliers likely in the mass market. Vladimir Kosenko of Luding Group said excise and customs policy have reduced imports from those countries in the lower and middle price bands.

Price estimates from traders suggest why the pattern is changing. Boris Titov, owner of Abrau-Durso and a board member of the Russian Association of Winegrowers and Winemakers, estimated that imported still wine now carries a price gap about 60% above comparable domestic wine. Daria Sologub, purchasing director at wine trading company Fort, said Russian still wines typically sell for about 500 to 800 rubles a bottle, sometimes up to 1,000 rubles. Wines from Chile and Argentina are generally in a similar 600 to 1,000 ruble range, she said, while South African bottles tend to cost more. Wines from European countries affected by the higher duty are now often priced at 1,500 rubles and above.

Georgia remains the second-largest source of still wine after Russia by sales volume, but its sales slipped 1.3% in the first half. Analysts said Georgian wine still has a cost advantage over many European rivals because it is not subject to the special duty and benefits from a free trade agreement with Russia. Even so, some market participants expect pressure to grow in Georgia’s basic price segment as consumers become more selective on quality.

Imports remain important in still wine for another reason: Russian producers do not yet fully cover demand in several popular white wine categories. Alexander Stavtsev, vice president of the Association of Retail Market Experts, said Russia has significant plantings for red wine grapes and enough acreage for the white variety Rkatsiteli, but demand is rising for lighter white wines made from Riesling, Sauvignon Blanc, and Pinot Grigio. Those grapes are grown in smaller volumes in Russia, he said, which keeps the market reliant on imports such as Pinot Grigio from South Africa, Sauvignon Blanc from Chile, and Riesling from Germany.

The domestic production base is expanding, but not fast enough to replace imports across the market. Russian vineyard area grew from about 105,000 hectares in 2023 to 110,200 hectares in 2024 and 113,300 hectares in 2025, according to Chernigovsky. Of that total, 89,500 hectares are of fruit-bearing age. He said industry estimates suggest Russia would need about 200,000 hectares to fully supply the domestic market with local raw materials, making rapid full import substitution difficult.

The sparkling wine market looks different. Imports account for a little less than 30% of sales, and Italy dominates that imported segment. Italian sparkling wine held a 22.5% market share in Russia in the first half and posted 7.7% growth from a year earlier. France held 2.9% of the market, Spain 2.7%, and Portugal 1.6%. Among the larger suppliers, only Spain showed a notable decline, with sparkling wine sales down 12.8%. Sales from Georgia fell 6.3% and from Abkhazia 66.4%, but those volumes were described as minimal.

Market participants said sparkling wine is less exposed to supplier substitution because the leading imported categories remain closely tied to traditional producers. Prosecco from Italy, Crémant from France, Champagne from France, and Cava from Spain still define much of consumer demand. Sologub said suppliers from countries that Russia considers friendly do not yet offer the same scale of competitive sparkling wine, in part because they have historically been less focused on the category and smaller production runs raise costs.

Even so, analysts said the range is widening slowly. Argentine sparkling wine was cited as having potential, while Chile and South Africa are gradually developing their offerings. At the same time, Russian sparkling wine has strengthened in the lower price bands. Titov said tax policy, the exchange rate, and improvements in quality have helped local producers. Sologub said Russian sparkling wine is mostly sold below 1,000 rubles a bottle, with a large share in the 500 to 600 ruble range, while imported sparkling wine usually starts at 1,000 rubles and Prosecco often begins around 1,500 rubles.

Industry expectations for the second half of 2026 are split by category. Experts told RBC Wine that still wine sales are likely to stagnate or decline moderately, depending on excise policy and whether producers and retailers can limit further price increases for consumers. Sparkling wine sales, by contrast, are expected to rise into the holiday season, when demand usually increases sharply. Kosenko said some brands could face shortages in December if that seasonal pattern holds. Stavtsev said Russian winemakers are also adjusting to changing tastes, with consumers moving away from heavy, tannic reds and showing more interest in lighter reds, rosés, and even still white wines made from red grape varieties.