Russia looks to set up state wine corp

26th August, 2014 by Neal Baker

Russia is looking to establish a large state-owned corporation to produce “wine materials” on home soil, raising industry fears of a shift away from wine imports.

Boris Titov, right, with Russian president Vladimir Putin (Photo: Kremlin Presidential Press and Information Office)

Boris Titov, right, with Russian president Vladimir Putin (Photo: Kremlin Presidential Press and Information Office)

Announcing the plan to the press on Sunday (August 24), Russian business ombudsman Boris Titov proposed the setting-up of a state-owned organisation to help increase the country’s wine production capability.

Russian news agency ITAR-TASS reports that Titov said: “We have proposed to establish a large corporation, which will be state-owned at the first stage, which would produce wine materials rather than operate on the wine brand market.”

A move like this would be certain to threaten wine imports to the country from the rest of the world, where investment has poured over recent years as the Russian economy grew and its status as one of the BRICs countries cemented.

If it were set up, the state corporation would be used to create a pool of machinery for vineyard treatment as well as logistics centres to dispatch output to other regions.

Most Russian winemakers currently buy the larger part of “wine materials” from Spain, Chile and Italy to produce sparkling wines, Titov said.

And, candidly, he is quoted as saying that the corporation would be established “for the purpose of import substitution.”

Seat of power: St Basil's Catherdral, Moscow

Seat of power: St Basil’s Catherdral, Moscow

His proposal is part of a government strategy to develop the Crimean wine-making industry since Russia annexed the territory earlier this year.

An overall scheme for Crimean wine is expected to be submitted to the Russian government at the beginning of next month.

Wine and spirits are feared to be the next products to be targeted for import embargoes by the Russian government after bans on Western food products were brought in earlier this month in response to EU sanctions over the Ukraine crisis.

In July, Russia set up a working group headed by Titov to study the prospects of developing vineyards and wine-making in Crimea.

In early August, the group submitted the first part of its strategy to Deputy Prime Minister Dmitry Kozak, describing the prospects of developing wine-making in Crimea based on state ownership.

Boris Titov is one of the founding members of Right Cause, a right wing political party committed to promoting the free market and private business.

One Response to “Russia looks to set up state wine corp”

  1. John says:

    This translates into “Putin needs wine so let’s spend people’s money and crate wine”. Typical dictatorship.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

On-Trade Channel Manager

Delegat Europe Limited (UK)
London / Midlands, GB

Trade Marketing Analyst

Delegat Europe (UK)
London, GB

Key Account Executive

Delegat Europe Limited (UK)
London / Midlands, GB

Senior National Account Manager

Bibendum PLB
London, UK

ON-TRADE Sales Executive

Roberson Wine
London, UK

OFF-TRADE Sales Executive

Roberson Wine
London, UK

Judging Week Runners

Decanter World Wine Awards
ExCel Centre, London E16, UK

Sales Administrator

Les Caves de Pyrène
Guildford, UK

Retail Commercial Executive

Laithwaite's Wine
Theale, Berkshire

Wine Buyer

Conviviality Plc
Crewe, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

Regional Account Manager

New Generation McKinley
London, UK

The Global Merlot Masters 2017

Deadline : 31st March 2017

The Prosecco Masters 2017

Deadline : 10th March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more