Russia’s wine imports from the European Union have dropped to their lowest level in two decades, with just 126,000 tonnes imported since the beginning of the year. This represents a 25% year-on-year decrease, according to RIA Novosti, citing Eurostat data. The last time imports reached such lows was in 2004, when only 87,000 tonnes of European wine entered the Russian market.
Italy has emerged as the dominant EU wine supplier to Russia, nearly doubling its market share to 39% and shipping 49,000 tonnes of wine this year. The total value of Italian wine imports to Russia last year stood at approximately €158 million. Meanwhile, Lithuania and Latvia—formerly the top suppliers—experienced significant declines, with imports dropping by 2.7 and 4.3 times, respectively. Russia received only 18,000 tonnes of Lithuanian and 14,000 tonnes of Latvian wine over the past eight months.
Rounding out the top five EU suppliers are Poland and Portugal. Poland’s exports rose by 1.7 times to reach 13,000 tonnes, while Portugal’s shipments increased by nearly threefold to 10,500 tonnes.
Global Market Shift
Although EU wines continue to account for the largest share of Russia’s imported wine market, they are facing stiff competition from other regions. EU wine imports represented 37% of Russia’s total wine imports in 2023, an increase from 31% in 2021 and 33% in 2022. The main competitor outside the EU is Georgia, which holds a 20% share of Russia’s wine imports. However, market analysts predict the EU’s share could fall below 30% by year’s end as wines from Latin America and South Africa make greater inroads.
Analysts highlight Argentina, Chile, and South Africa as regions with significant growth potential, bolstered by an absence of elevated tariffs. South Africa is particularly well-positioned for expansion due to its robust supply of white and sparkling wines, which have been gaining popularity in Russia. Chile, however, remains a strong player, with 16.6 million liters exported to Russia last year—an increase of 10% from 2022—closely followed by South Africa and Argentina, according to Luding Group, one of Russia’s largest wine distributors.
Impact of Sanctions and Trade Policies
The sharp decline in EU wine imports to Russia also reflects geopolitical tensions. On March 15, 2022, the EU imposed a ban on wine shipments to Russia valued at over €300 per bottle. While the policy affected only around 1% of the market, the Russian government has since raised import tariffs on wine from “unfriendly” countries, a list that has expanded from two countries in 2021 to 49 nations.
Initially, Russia raised import duties from 12.5% to 20%, with a minimum of $1.50 per liter. The measure, effective from August 1, 2023, was extended through 2024. This past August, the government increased tariffs again to 25%, or at least $2 per liter, further impacting EU wine imports.
Despite the shifting trade landscape, overall wine imports to Russia rose by 4.4% last year, totaling 320 million liters of still and fortified wine, according to Luding Group. The data underscores the country’s growing reliance on non-EU wine sources as import duties and sanctions reshape the dynamics of Russia’s wine market.
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