Support The Moscow Times!

Kremlin Eyes State Alcohol Monopoly with $88M Deal

Sergei Porter / Vedomosti

Russia's state-owned alcohol producer Rosspirtprom has acquired eight new distilleries in a deal worth 5.7 billion rubles ($88 million), the Vedomosti newspaper reported Wednesday.

The purchase included some of the largest production facilities in Russia, all of which previously belonged to businessman Valery Yakovlev. The deal boosts Rosspirtprom domestic market share to 61 percent, Vedomosti reported.

Vadim Dobroz, the director of the Research Center for Federal and Regional Alcohol Markets, told Vedomosti that the purchases hinted again at possible state plans to create an alcohol monopoly. “In reality, there was only ever one buyer [for these factories],” he said. “In such a situation, any money is just a gift.”

Deputy Prime Minister Alexander Khloponin announced last year that the monopoly on the sale of alcohol was “a very important policy” and one that the government should “pursue in the next year and put under control,” Vedomosti reported. ? 

The two most expensive factories bought by Rosspirtprom were for Tula's Zernoprodukt and Kabardino-Balkaria's Premium, costing 1.12 billion rubles ($17 million) and 1.04 billion rubles ($16 million.) Other new acquisitions included factories in Kursk, Novosibirsk, and North Ossetia.

Domestic vodka production has recently surged by up percent as the government began cracking down on the production and sale of counterfeit alcohol in the past year. Foreign alcohol imports are also threatened by a shortage of mandatory, state-produced excise stamps.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more