You're reading: After Russia annexed peninsula, Crimean wine produced on mainland Ukraine

More than a year after Russia annexed Crimea, shelves in Ukrainian supermarkets are still stuffed with Crimean wine. The only thing Crimean is the name in some cases.

Crimean resorts and vineyards in Bakhchisarai, Inkerman and Koktebel have been the homeland of locally famous wines for decades. After Russia seized the peninsula, wineries fled to the mainland. Beverages produced in Crimea can’t be sold in Ukraine or exported to Europe.

Thus, some wineries gather grapes in Crimea, but the final production and bottling takes place at factories on Ukrainian government-controlled territory. Others buy from Ukrainian vineyards.

The Massandra winery collection is in Crimea, now occupied by Russia.

Volodymyr Kucherenko is the head of Ukrvinprom, the biggest corporation representing the interests of Ukrainian wineries. He says bottling wine in a different location from where the grapes are cultivated is a common practice.

Those companies, however, face double taxation – for bringing the raw supplies to Ukraine and then for excise taxes.

Natalia Shumkina is the head of marketing at Alef Vinal, which includes Zolotaya Amfora, Villa Krim and Kosher trademarks. Alef Vinal produces wine in Crimea and on the mainland. Nothing has changed since the Russian takeover of the peninsula.

Marketing and product placement are among the problems encountered in changing production centers, says Serhiy Mykhaylechko, head of the Winegrowers and Winemakers of Ukraine Association.

“Lots of Crimean trademarks had names associated with Crimea itself. It turns out that the names are the same, but the wine production isn’t in Crimea, but rather in Odesa or Mykolaiv Oblast,” Mykhaylechko said. “We think companies must realize that they may mislead consumers.”

Keeping Crimea-related names may hurt the company’s image and sales, Kucherenko said, as Ukrainian consumers avoid Crimean wine for political reasons. While Russia’s annexation struck a major blow against Ukraine’s winemakers, the industry is suffering for other reasons.

According to Mykhaylechko, wine production in Ukraine plunged by 48 percent in 2014. Recession and increased taxes are cited as reasons.

The Agricultural Ministry says there is a silver lining by boosting the development of wine sellers on the mainland.