Increased import duties on wine will create additional incentives for domestic wine producers - Russian Agriculture Ministry

MOSCOW. July 25 (Interfax) - An increase in Russian import duties on wine will create additional incentives for Russian winemakers, the Agriculture Ministry said.

"The increase in import duties for unfriendly countries will create additional incentives for domestic producers, and will help reorient demand toward high-quality Russian products and wines from other regions of the world," First Deputy Minister of Agriculture Oksana Luth said in a ministry press release.

However, she noted that the decision is not prohibitive. It will keep a wide range on the shelves and all the choices consumers want.

The Russian government decided to raise the duty on wine imports from unfriendly countries from 12.5% to 20%, but not less than $1.5 per liter. This measure will be in effect until the end of 2023.

Luth emphasized that in recent years, Russian viticulture and winemaking has become one of the actively developing and investment-attractive segments of the agro-industrial complex. "Systematic legislative and financial support for domestic producers has helped revive interest in this area, creating comfortable conditions for doing business," she said. "As a result, we see an annual increase in vineyard planting areas, the emergence of new interesting wineries and an increase in product quality, which, among other things, has been confirmed at the international level."

The next step that needs to be taken in order to maintain positive dynamics is to protect the domestic market from cheap imports, Luth said.