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Drinks

Russia To Raise Vodka Prices

By square1
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Russia To Raise Vodka Prices

According to reports, the Russian government plans to raise minimum vodka prices next year in order to reduce consumption of alcohol, despite risks that drinkers will resort to cheaper illegal liquor instead.

Alcoholism is estimated to contribute to 30% of deaths in the nation of 143 million, according to medical surveys.

The Russian government intends to increase the price of a half-litre of vodka by 17%, from the current RUB170 (US$5; £3) to RUB199 (US$6, £3.70), on 1 January 2014.

The new price increases will boost the price of vodka by almost 30% against 2013, Reuters reported, citing a government draft decree.

While higher prices have already dented store sales of vodka, according to official figures, experts warn that higher prices will lead people to drink more bootleg liquor - sometimes fatal if not distilled properly.

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Russia has been tightening regulations for producers of vodka and beer, such as Russia's Synergy, Poland's CEDC and Danish brewer Carlsberg.

In recent years, Russia banned alcohol advertising, raised excise taxes, restricted sales after 11 p.m. and banned sales of alcohol, including beer, from kiosks. Lawmakers are now considering raising the minimum drinking age to 21 from 18. ($1 = 33.1600 Russian roubles).

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