Production of Moonshine and Whisky Now Legal in Russia

Published By : 22 Jul 2015 | Published By : QYRESEARCH

Russia recently declared alcohol production in the country to become legal. The beverages included within this are homemade moonshine, whisky, and different types of distilled beverages derived from grains. Despite Russia having set rules and standards as regards the manufacturing of cognac, brandy, and vodka, it had never put forth legal standards when it comes to grain distillates such as malt barley that is used in the production of homemade drinks and Scotch whisky. 

The legal alcohol market of Russia has witnessed sluggish performance in several sectors primarily in the production of vodka which in 2013 witnessed a major collapse soon after a significant hike in excise taxes. In 2014, the production of the same once again decreased by 22%. Analysts have stated that such a decline came at a time when the continued attempts of the government to increase taxes levied on alcohol. 

An additional factor is due to the alcohol that is exported to Ukraine, which happens to be Russia’s main export destination for vodka. However, it is the illegal alcohol market in Russia that continues to remain strong and comprises close 65 percent of the total market as stated by the Russian Business Consulting Agency. As per sources, a certain standard was implemented sometime early this month with regard to Russia’s production of distilled grain. However, the producers of vodka in Russia have started debating the introduction of whisky in Russia, in short, Russian whisky. 

As regards the trade sanctions of Russia with Europe, there is no ban on Scotch. But on the downside, exports of Scottish whisky have been declining since the beginning of the conflict in Ukraine. At that time, the value of exports dropped almost by 95%. As per the estimates of the customs agency of Russia, there has been a decline in whisky imports since January by 34%. 
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