Russian wine industry will take the path of civilized development

10 june 2014

The expert of the Analytical Center Elena Razumova participated in the roundtable organized by the International Media Agency "Russia Today", dedicated to the development of the Russian wine industry.

Wine was officially labeled as an agricultural product at the end of May 2014. The vineyard area is planned to grow one and a half time by 2020, and winemakers will be given preferential conditions in the form of easy licensing and access to subsidies. Industry representatives consider such solutions to be epochal breakthrough and it is believed that the wine industry in Russia will finally take the path of civilized development.

Work on the bill has been conducted for 2 years. Members of State Duma intend to adopt it by the end of the session, so that winemakers could start working under it by the end of the fall, during harvest. The law that will regulate the production of wine from Russian grapes will share its control over grapes production and wine making with the Ministry of Agriculture and product circulation within the market with Federal Service for Alcohol Market Regulation as supervising authorities. New terminology will be introduced. A new classification will be applied in relation to Russian wines. Such notions as "wines with protected geographical indications" and "wine with protected designations of origin" will be created. License requirements will be specified.

Ms. Razumova said that the Analytical Center has been working on wine production issues for more than a year. In order to discuss the problems within the industry, a roundtable was organized last year. The initiatives made ​​ by the participants of the event, were sent to the Government of the Russian Federation and almost all of them are reflected in the draft law.

Ms. Razumova considers that attracting new investments is very important for the industry. But an obstacle for investors was the difficulties with product circulation within the market. Investment lag in this area ranges from 7 to 10 years, and long-term prognoses were impossible to make giving the existing uncertainties. The expert mentioned the wine marketing as another important matter. “Analyzing the experience of countries where wine publicity is allowed, we found out an interesting pattern: regions with high rates of wine consumption have low rates of spirits consumption”, - pointed out the expert.

Among the participants were: Presidential envoy for entrepreneurs’ protection Boris Titov, Deputy Chairman of the State Duma Committee on economic politics Viktor Zvagelsky, President of the Russian Union of Winegrowers and Winemakers Leonid Popovich, Director of the winery “Novy Svet” Yanina Pavlenko.

Video file of the event located on the website of the International Media Agency “Russia Today”.