Russian wine producers urge a 200% tariff on imports from countries Moscow calls hostile

Russian wine producers are again calling for a steep increase in import duties on foreign wine, with an industry group urging the government to raise the tariff on wine from what Russia calls “hostile countries” to 200%, according to the state news agency TASS.

Petr Efremov, executive director of the Association of Winegrowers and Winemakers of Russia, said the group’s position has not changed since it first raised the idea. TASS quoted Efremov as saying the association is primarily opposed to imports from countries that Russia has designated as hostile and that this has long been its standing view.

The issue was discussed at the Russian Wine Forum, where Pavel Mayorov, an adviser to the association’s executive director, also addressed import duties. Mayorov said Russia faces tariffs on its own wine exports in nearly all foreign markets, with the exception of countries from the former Soviet Union and members of the Commonwealth of Independent States. In that context, he argued for tougher trade protection at home.

The proposal would sharply expand Russia’s current tariff regime for imported wine from countries that imposed sanctions on Moscow. In August 2023, the Russian government raised the import duty on wine from such countries, including the United States and European Union member states, from 12.5% to 20%. At the time, the government said domestic wine production could meet internal demand and described the move as a response to Western sanctions.

The association first proposed lifting the tariff to 200% in March 2024. It also suggested a quota for restaurants and other hospitality businesses that would require Russian-made wines to account for 50% of wine lists. That proposal has remained part of a broader push by domestic producers to secure a larger share of the market as Russia continues to restrict trade with Western countries.

The term “hostile countries” is used by Russian officials for states that have taken measures against Russia after the start of the war in Ukraine, including sanctions, export controls, and financial restrictions. Wine imports from Europe have long held a strong position in the Russian market, especially in restaurants, retail chains, and the premium segment. A large increase in tariffs would likely raise prices for imported bottles and further shift shelf space and wine lists toward domestic producers and suppliers from countries outside the sanctions dispute.

The Russian government has already tied wine duties to broader economic policy goals. In May 2024, President Vladimir Putin instructed the government to direct part of the revenue collected from the higher tariffs on wine from hostile countries toward tourism development. That order linked the import duty policy not only to trade retaliation and import substitution, but also to domestic investment plans.

It is not yet clear whether the government will adopt the 200% tariff requested by the industry association. No timetable for a decision was given in the TASS report. If approved, the measure would mark a major escalation from the current 20% duty and could further reduce the presence of Western wine in Russia’s market while strengthening protections for domestic vineyards and wineries.