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May 30, 2022 View:

International Cooperation and Export National Program Helps Expand Russian Wine Exports to Foreign Countries

Russian wines are popular abroad and are famous not only in CIS countries, but also in China and Israel.

Image courtesy of: Perspective Russia

Wine may become one of the key sectors in Russia"s agro-industrial production sector, Russian Deputy Agriculture Minister Oksana Lut said at WineFest 2020, the fifth annual wine culture festival in Balaklava.

According to her, the new viticulture and winemaking law, which came into force in June, provides winemakers with unique opportunities to make wine from Russian grapes. Together with other measures (refund of paid excise taxes, support for vineyard construction, winery construction and modernization), the law will provide a strong incentive to create successful wineries, Lut said.

The National Program of International Cooperation and Exports helps to expand the foreign exports of Russian wines. On the contrary, access to international markets will stimulate Russian wine producers to improve the quality of their products for the domestic market.

According to data from Agricultural Exports under the Russian Ministry of Agriculture, Russian wine exports have grown by 39% in the last four years, surpassing $10 million in 2019. In physical terms, wine shipments reached 73 million tons. from January to June 2020, Russia delivered 2,900 tons of products to foreign markets (23% more than in the same period last year). In monetary terms, exports in the first half of the year grew by 15% to $3.5 million). The main destinations for wine exports were Ukraine (51%), Belarus (11%), Kazakhstan (9.3%) and China (7.9%). In addition, Germany, Israel, Switzerland and other countries are importing Russian wines.

In the first six months of 2020, Massandra's (Massandra) exports increased by 42%. Since 2016, the company has been working with the Chinese side to provide wine exports. Traditionally, the Chinese prefer dry red wines, but according to the wishes of the partners, the other side is ready to try dry white wines, says Yanina Pavlenko, the company's general director. However, in Belarus semi-sweet wines, sweet wines, after-dinner wines and liqueurs are more popular, while Kazakh consumers prefer after-dinner wines and high wines.

Kuban-Vino supplies Ukraine, Belarus, Kazakhstan, Mainland China and Hong Kong, Japan, Spain, Germany, Brazil, Norway, Turkey, Malaysia, etc. This year, an agreement was also reached with Finnish companies on wine export. This is the first time that Russian wine is exported to Finland, the enterprise representatives said. There were six winemaking companies in Krasnodar Krai that competed for our wines, and they finally chose them. The first delivery was 2,000 liters.

According to the Russian Export Center (REC), within the framework of international cooperation and export national programs, Russian wine exporters can receive a variety of policy support. These support policies include participation in major international exhibitions, business visits to target countries, promotion through e-commerce channels, transportation subsidies, and partial reimbursement of product certification and trademark protection costs.

The Russian Export Center believes that: the export prospects for Russian wine are very promising. We benefit from the geographical proximity to China, where the culture of wine consumption is developing and many European countries have a better view of Russian products than before.