Published On: Mon, Jun 9th, 2025
World | 3,692 views

Russian economy meltdown as vodka production plummets 13.2% | World | News

Production of vodka in Russia has plummetted by more than 13%, according to the latest data. The dip occurred between January and May as the country also deals with a shortage of potatoes. On May 14, President Vladimir Putin admitted that Russians “don’t have enough potatoes”. Figures suggest that, in the first few months of 2025, the price of the crop surged by 52%, while the overall harvest dropped by 12%.

In the first five months of 2025, Armenia exported nearly twice as many potatoes to Russia as it did during the first half of 2024, and almost 17 times more than during the same period in 2023, the the country’s Ministry of Economy told Russian news service TASS. Now, the Federal Service for the Control of Alcohol and Tobacco Markets, Rosalkogoltobakkontrol, has reported that Vodka production fell by 13.2%, to 25million decaliters.

Vodka was not the only product that saw a downturn, with Cognac enterprises reducing production by 19.5% to 2.69million dal.

Liquor products were produced at 6.539million dal – 3% less.

Alcoholic beverages overall (with a strength of over nine degrees) were produced during this period at 37.41million dal – 12.1% less than last year.

A “gradual recovery of demand” has been cited as the reason for this.

“Plus, the inventory made at the end of last year against the background of the change in the excise tax rate and the minimum retail price has already been sold,” officials said.

The decline in production in this sector of the alcohol market amounted to 14.7%, based on the results of four months, Russian news service Interfax reports.

In addition, fruit alcoholic drinks were produced in 550,400 dal, which is 15.9% less than a year earlier.

However, the production of grape wines increased by 10.4% to 14.699million dal over five months.

The growth rate of sparkling wine production was even higher – 17.8% to 6.012million dal.