Russia plans steep tax hike on imported alcohol from unfriendly nations by 2026
Russia plans steep tax hike on imported alcohol from unfriendly nations by 2026
Russia plans steep tax hike on imported alcohol from unfriendly nations by 2026
Russia's Finance Ministry has proposed a sharp rise in import duties on strong alcohol from so-called unfriendly countries. The new rate, set to jump from €3 to €5 per litre, would take effect on 1 May 2026. If approved, the move is likely to push up prices for imported spirits in the latter half of next year. Since September 2024, Russia has already imposed a 20% duty—with a minimum of €3 per litre—on strong alcohol from nations it labels as unfriendly. These include all EU member states and other Western countries, as listed in official government documents. The latest increase aims to further reduce reliance on foreign brands while encouraging demand for domestic alternatives like Russian brandy and whiskey.
Industry experts warn that the price hike will not be immediate. Existing stockpiles will soften the blow at first, but as supplies run low, costs are expected to climb steadily. By the second half of 2026, consumers will likely face significantly higher prices for imported spirits.
Andrei Moskovsky, president of the Alkopro Guild, predicts a decline in sales for well-known foreign brands. Ruslan Bragin, who heads the strong spirits division at Fort, agrees that producers will pass at least part of the extra cost to shoppers. The result, they say, will be a shrinking share of imported alcohol in the budget and mid-range market segments. The duty increase is scheduled for 1 May 2026, with the full financial impact becoming clear later that year. Analysts expect a noticeable shift in the market, as cheaper domestic spirits gain ground over pricier foreign alternatives. The policy aligns with broader efforts to cut imports and promote local production.