Alcohol market research attributes 42% drop in exports in 2015 to economic predicament and western sanctions

Russias vodka and liquor exports slumped last year largely due to political tensions with the west and Ukraine.

According to the Centre for the Study of Federal and Regional Alcohol Markets, Russian exports of the products fell by 42% to 43.5 m litres in 2015, the lowest amount since 2005. The total value of vodka and liquor exports dropped 40.2% to $111.9 m( PS77. 4 ), Kommersant newspaper reported.

The amount of Russian alcohol exported to Britain also shrank by 59%, decreasing to 9.9 m litres in 2015, the director of the centrre Vadim Drobysaid.

Droby added that following the fall in oil prices and Russias ensuing economic crisis, many vodka producers no longer had the money to distribute and promote their alcohol in export markets. Droby also blamed western sanctions against Russia for ruining companies savor for export.

The sanctions dont outlaw vodka, but every entrepreneur chore is to make money, and he wont risk his money so your English consumer will have Russian vodka, he said. Maybe theyll outlaw Russian vodka tomorrow; who knows?

Negative media coverage of Russias involvement in conflicts in Ukraine and Syria has turned foreign customers off, he argued.

Tense relations with Ukraine accounted for a large part of the slump, following Russias 2014 annexation of Crimea and backing of a separatist conflict in eastern Ukraine. Russian vodka exports there shrank by almost 10% from $38.6 m in 2013 to $3.87 m in 2015.

Roust holding, which owns the popular Russian Standard brand and controls about 60% of Russias export market, blamed slowed marketings in Ukraine and Kazakhstan for its 29% decline in export volumes in 2015.

Despite the drop in volumes, the UK remains the largest importer of Russian vodka, with $22.53 m worth of alcohol deliveredin 2015, followed by Germany, Latvia and the US. Now that small vodka makers have been forced out of domestic exports game, some large firms have been able to profit: Rousts brands now account for a record 15% of the vodka market in the UK, Kommersant said.

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