Russian vodka exports plummet by 40%

Exports of Russian vodka have hit a record 10-year low, dropping 40% in 2015 due to a decrease in demand across the West and more dramatically in Ukraine.

According to Russian newspaper Kommersant, Russian exports of vodka and liquor fell by 40% to 43.5 million litres in 2015 – the lowest since 2005 – based on stats obtained from the Centre for the Study of Federal and Regional Alcohol Markets (CSFRAM).

It reported that the total value of vodka and liquor exports dropped 40.2% to US$111.9m (£77.4m) in 2015. In the UK, imports of Russian alcohol dropped 59% to 9.9m litres. However Ukraine saw the most dramatic decrease, with exports to the country dwindling from a healthy $38.6m in 2013 to just $3.87m in 2015.

Vadim Droby, director of the CSFRAM, blamed the dramatic slide in exports on the fall in oil prices and Russia’s economic instability, explaining that many producers no longer had the money to distribute and promote vodka in export markets, and also blamed western sanctions against Russia for dampening exports.

“Due to the events in Ukraine and Syria, the attitude towards Russia in the West has worsened and that could be the main reason for the drop in sales of Russian vodka,” he was reported to have said.

Earlier this year Ukraine extended its ban on Russian exports to vodka, a move that is likely to affect exports to this country further throughout 2016.