Russian Wine Producers Gain Market Share as Imports Plunge After Tariff Hikes

Russian wine producers have increased their share of the domestic market as imports continue to fall, according to recent data from the National Committee of the Republic of Crimea. Russian still wines now account for more than 60% of total retail sales, while domestic sparkling wines make up over 70%. This shift comes as a result of higher tariffs on wine imports from countries classified by Russia as “unfriendly,” mostly Western nations, and rising prices due to increased excise taxes.

The Russian National Credit Ratings Agency (NCR) predicts that, because of these tariffs and price hikes, foreign wines priced under 600 rubles (about £5.81) may disappear from supermarket shelves this year. In 2025, Russia’s total wine imports dropped to their lowest level in at least five years. Imports from the European Union fell by 14% in 2025, totaling approximately €520 million in sales. Still wines in bottles up to two liters brought in €272.9 million, while sparkling wines accounted for €246.2 million.

Tariffs on imported wines have risen sharply over the past two years. In August 2023, Russian authorities increased duties on wines from “unfriendly” countries from 12.5% to 20%. The rate rose again in summer 2024 to 25%, with a minimum charge of US$2 per liter. These rates are set to remain until at least December 31, 2027. As a result, NCR reports that imports of all types of wine and Cognac to Russia decreased by 15-16% compared to 2024.

This decline in imports has led Russian consumers to turn increasingly toward domestic products. The growth in demand has driven up local wine production. In 2025, Russian wine production—including brandy—rose by 7% compared to the previous year, reaching 65.7 million decaliters.

Despite this increase, industry leaders say domestic production is still not enough to meet demand. Maxim Kashirin, president of Simple Group, one of Russia’s largest wine distributors and importers, said there is currently a shortage of Russian wines on the market. Pavel Titov, president of Abrau-Durso, a leading Russian wine producer, noted that winemakers lack sufficient domestic raw materials to fully replace imported wine. He said new vineyards are being planted rapidly but it will take several years before yields are high enough to meet demand.

The trend toward domestic beverages is not limited to wine. Imported beer sales have also dropped sharply following tariff increases. Igor Khavsky, co-owner of SVAM Group, said that after beer tariffs rose to €1 per liter at the start of 2025, retailers nearly stopped importing foreign beer altogether. He expects imported beer’s share of total retail sales in Russia could fall below 3% by 2026.

The combination of higher tariffs and limited supply has changed the landscape for alcoholic beverages in Russia. Domestic producers are expanding operations but face challenges in scaling up quickly enough to fill the gap left by declining imports. For now, Russian consumers are seeing fewer foreign options on store shelves and turning more often to homegrown alternatives as the country’s beverage market adjusts to new trade realities.