A potential rise in duties on imported wines is not expected to trigger a sharp surge in prices within Russia’s domestic market. Yet a modest uptick could occur, according to Vadim Drobiz, head of the Federal and Regional Research Center for Alcohol Markets (CIFRRA), as reported by Lenta.ru (citation: Lenta.ru).
Officials in Moscow, specifically the Ministry of Finance and the Ministry of Industry and Trade, are examining changes to the tax regime on imported wines. A final decision is anticipated in the months ahead. Drobiz notes that even a tax increase would likely exert only a limited effect on the broader Russian consumer base, given current market dynamics (citation: CIFRRA).
He added that even a doubling of the tax would not substantially raise prices. Imported wine tends to be consumed by the middle class, and while higher costs would be unwelcome, this demographic group would still manage, albeit with some strain (citation: CIFRRA).
On June 27, Alexei Sazanov, Deputy Head of the Ministry of Finance, stated that there is consideration of imposing tariffs on imported wine to boost domestic production. The decision on this matter is expected within the next two months. Currently, the tax on imported wine in Russia stands at 12.5 percent (citation: MinFin).