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

European Brands Sales Manager, Field Sales Managers and Executives

Amathus Drinks PLC
London, Brighton, E Sussex/Kent, Cornwall & Devon, GB

Commercial/Sales Manager

Crush Wines Ltd
Bremhill/Home office, GB

Wine Buyer

Adnams
Southwold, UK

Sales Manager - Scotland

Eurowines Ltd
Scotland

Sales Manager - North-West England

Eurowines Ltd
North-West England, UK

Sales Manager - London

Eurowines Ltd
London, UK

Key Account Manager - Grocery

Australian Vintage Limited
London (Croydon), UK

Key Accounts Manager - Impulse

Australian Vintage Limited
London (Croydon), UK

Business Development Manager

Regency Wines Ltd
North Devon & Somerset, UK

Sales Manager - North East England

Eurowines Ltd
Within 15-20 mile radius of York, UK

National Account Manager

Ehrmanns Wines
London, UK

London Account Manager

The Drinks Club
London, UK

London Sales Executive

Gourvid Limited
London and Greater London, GB

Logistics Administrator

Speciality Drinks Ltd
Park Royal, London, UK

Head of Sales - Hush Heath Estate

Hush Heath Estate
Kent/ London, UK

The Global Merlot Masters 2017

Deadline : 2nd May 2017

db Awards 2017

Deadline : 3rd May 2017

The Global Organic Masters 2017

Deadline : 2nd May 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more