Russia Makes Less Booze Due to Taxes

Production of booze in Russia experienced more than a quarter drop in the first quarter of 2025 compared to the same period the year prior. 

RBC Russia, citing the country’s Federal Service for Alcohol and Tabaccontrol (RATC), said the drop amounted to 26.6%, from 443 million liters (117 million gallons) to 325 million liters (85.9 million gallons). 

Compared to the same period in 2024, vodka and cognac production dropped by 22.7% and 25% respectively. The category “other alcoholic beverages” that includes booze such as whiskey and rum dropped 23.2%.

The report noted that the only increase in alcohol production as a whole was recorded in still and sparkling wines, which grew by 11.5% and 15.7% respectively.

RATC attributed the drop to the increase in excise taxes and the minimum retail price since Jan. 1.

The Moscow Times reported that starting Jan. 1 this year, the excise tax on ethyl alcohol and alcohol-containing products increased by 15%, from 643 rubles ($7.5) to 740 rubles ($8.6). It said the minimum price for half a liter (about one pint) of vodka and cognac increased from 299 rubles ($3.5) to 349 rubles ($4) and 556 rubles ($6.5) to 651 rubles ($7.6) respectively.

The outlet noted that the highest alcohol consumption by region in 2024 was recorded in the Russian Far East, such as the Sakhalin and Chukotka regions, followed by the Karelia region bordering Finland. 

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