The Russian government is preparing to impose a 200% tariff on wine imports from France, Spain, and Germany in response to Western sanctions. Maxim Chmora, head of the Federal Customs Service’s department of federal customs revenue and tariff regulation, has indicated that this steep tariff could be applied to wines from NATO countries. Additionally, a 50% tariff on wines from other so-called ‘unfriendly’ nations is also under consideration.
“This duty would effectively function as a ban,” Chmora said. “From an economic standpoint, paying this duty and continuing business would only be feasible for products with very high profit margins.”
The proposed tariffs are also aimed at boosting Russia’s domestic wine industry. While most of Russia’s territory is unsuitable for grape growing, regions such as Krasnodar and Rostov do produce wine. Russia currently has 85,000 hectares of vineyards, with Rkatsiteli being the most widely planted grape, along with Cabernet Sauvignon, Merlot, Riesling, and other international varieties.
Dmitry Kiselev, chairman of the Association of Winegrowers and Winemakers of Russia (AWWR), argues that ‘excessive imports’ are straining the domestic winemaking sector. The AWWR has successfully advocated for increasing duties on wine imports from ‘unfriendly countries’ from 12.5% to 20%. However, Kiselev is pushing for even higher tariffs to curb oversupply in the domestic market.
If European wines are effectively banned, this could benefit producers in Argentina, Chile, South Africa, and Armenia, countries that have been growing their exports to Russia and could see their market share expand further.
Russian winemakers have also requested additional support from the government. One proposal suggests that 20% of the wines sold in Russian supermarkets should be locally produced, and that half of the wines listed in bars and restaurants should be domestic.
