Despite a ban on online sales, the online alcohol market reached a substantial scale in 2024, with the market value surpassing 100 billion rubles, according to AKIT chairman Artem Sokolov as cited by socialbites.ca. By contrast, in 2022 the Ministry of Finance estimated the market at about 30 billion rubles through NIFI data.
These figures point to enormous volumes of the shadow sector and noticeable gaps in Russian budget revenues. It is clear that this is a market dominated by shadow players, with little visibility or accountability. The shift occurred as about 70 million Russians became regular internet customers and began ordering alcohol more frequently. This demand, paired with growing delivery services, allowed an unchecked niche to take hold. The concern is that many of these sellers do not accept responsibility for their content because the activity is illegal from the outset. The path forward, according to Sokolov, lies in establishing clear mechanisms to transition from an illegal market to a legal one.
There is broad acknowledgment that thousands of websites in Russia illegally sell counterfeit alcohol. In major cities there are illegal offices ready to deliver any alcoholic beverage around the clock to points across Moscow, St. Petersburg, or other large centers within an hour, notes Maxim Chernigovsky, general director of the nonprofit Club of Alcohol Market Professionals.
Implementing a plan for online alcohol sales would require additional time, estimated at six months to a year after the state makes a decision. Even if a wholly state controlled environment with a modern trading system for online alcohol is approved tomorrow, companies would still need to overhaul business processes and integrate with several third party systems. This is not a simple upgrade; it would take at least six months or a year to meet the high standards applicable to products in this category, according to Sokolov.
Editing options
There is a proposal to regulate the market through state systems such as EBS, EGAIS, and Honest Signal. These systems would enable age checks via the Unified Biometric System UBS. Registration with the UBS would be required and consent to data processing would be part of the age verification service. When purchasing online, biometrics would verify the buyer’s age on the store’s website or app, and would also eliminate the need to present a passport to the courier when picking up the order. The Center for Biometric Technologies is a key player in this development. The central bank views online age verification with biometrics positively, noting that it would reliably confirm age and prevent minors from buying restricted products online. The service is expected to be popular among households accustomed to home delivery of groceries, according to the central bank.
Quality issues in the market are addressed through a traceability system, with EGAIS serving as the backbone for producer to consumer oversight. AKIT argues that EGAIS is technologically capable of controlling and tracing legal products, though it still needs enhancements to cover all online transactions. For example, products could be held temporarily during delivery so that funds are released only after age confirmation and successful delivery.
When the remote sale ban on alcoholic beverages was first introduced, the rationale was the lack of suitable technology and the underdeveloped online market. Since then, the market has grown dramatically. It is projected that by the end of the year the total online trading volume will exceed 9 trillion rubles, with roughly 1.5 trillion rubles representing the delivery of food and ready meals. Today, most market participants already offer such deliveries, and the necessary technologies to sell alcohol within legal requirements are in place, according to Sokolov.
Current risks
Delays in adopting a state controlled online alcohol regime keep current risks intact. Experts note that many Russians remain unaware that online alcohol sales are prohibited. When looking at a regular store, consumers see few restrictions aside from age and time, and are surrounded by delivery options, making it unclear that online alcohol sales are illegal. A VTsIOM survey found 79 percent of Russians do not view online alcohol purchases as illegal.
Maxim Chernigovsky adds that many people do not realize that online alcohol sales are prohibited in Russia and yet they buy online, believing they are purchasing legal alcohol. The main danger in the current market is the high risk of counterfeit products that can cause serious harm to health.
Foreign experience
Maxim Chernigovsky points out that in most countries where legal retail alcohol is allowed, online sales exist. This is common practice, and several countries in the Customs Union also permit such sales. There are over a hundred countries without prohibitions on online alcohol, or where bans were lifted. While some nations lifted restrictions during the Covid period, none saw a rise in overall alcohol consumption. Global data show that online sales share remains a portion of total retail across wine, spirits, and beer, typically not exceeding single digits.
Russia could look to international examples in shaping policy. For instance, biometrics used in China for age verification could guide age checks: a courier could capture a photo, verify age in real time, and transfer the alcohol only to adults. If the buyer is a minor, the courier would take the items back to the store. This approach reflects a broader view that online alcohol should be shifted from the shadow market into regulated channels.
Experts believe that lifting the online sales ban would not only curb illegal activity but also improve the drinking culture in Russia, given the rapid growth of online commerce and the parallel expansion of illegal online markets.