From 3p to about 8p per litre. Russia's beer duty hike on 'unfriendly' nations

The Russian government has raised the customs duty on beer from "unfriendly" countries to about 8p per litre. Moscow claims this will benefit local producers.

The Russian government increased the customs duty on beer from unfriendly countries from 3p to about 8p per litre, as reported by the Russian state agency TASS, citing the Ministry of Industry and Trade. "The decree also raises rates of customs duties on beer from unfriendly countries. In particular, the duty will grow from 0.04 euro at present to 0.1 euro per liter (10 eurocents). The share of these products in the general consumption structure is not above 5%."

Tariffs on vermouth, sparkling wines, and regular wines from unfriendly countries have been increased to 20 percent depending on the cost, but not less than £1.13 per litre, as reported by the portal of the independent newspaper Kommersant.

According to information provided by TASS, import duties for certain types of goods— finished cocoa-containing products, coats, wallpapers, and zippers—originating from Lithuania, Latvia, or Estonia were also increased to 50 percent.

"The Moscow Times" reports that the head of the State Duma Committee on Regional Policy and Local Self-Government, Aleksey Didenko, previously suggested banning the import of beer products into the country. The politician noted that these imports primarily come from Germany, Lithuania, and Latvia, countries that support Ukraine in the conflict with Russia.

Didenko believes that the ban on the import of beer from unfriendly countries will benefit Russia by levelling the playing field for domestic producers and creating room in the market for products from countries favourable to Moscow. Conversely, it is a tangible counter-sanction action for Western countries, claims the deputy.

From 2022 to 2023, Germany was responsible for over one-third of all beer imports to Russia. Last year, supplies increased by 32 percent to £73 million compared with 2022, and Germany's total share of imports to Russia jumped by 4.7 percent, as "The Moscow Times reported." Lithuania takes second place in beer imports, which in 2023 accounted for just over 15 percent of all deliveries at a total value of £27.7 million.