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Champagne production may shrink in Russia next year

The draft law On Winegrowing and Winemaking, which has been adopted by Russia’s State Duma, will give a new impetus to the sector’s development, increase the number of vineyards, and boost the quality of the Russian-made wine and consumer trust.

However, things may turn to be not as pleasant as expected. For instance, a ban on the use of imported wine materials may substantially cut down the production of champagne in Russia. The country’s two largest sparkling wine manufacturers, Abrau-Durso in the Krasnodar Territory and Igristyye Vina (Sparkling Wines) in St Petersburg, make most of its products from wine materials imported from Spain, South Africa and other countries, and the new law may have a disastrous impact on these companies.

Today, Russia’s wine industry is heavily dependant on imports, with only 30% of necessary wine materials produced domestically. The new law will possibly change this situation but it is not going to happen immediately. Complete import substitution is expected no sooner than in 2030, expert say. Some Russian wineries find themselves in desperate situations, while others look forward to having fewer competitors in the market or consider expanding their vineyards (Abrau-Durso President Pavel Titov told Ridus that the company is purchasing lands suitable for viticulture in the Anapa County). Meanwhile, the only thing left for consumers to do is to buy up champagne before it disappears from shelves.    

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