Main points
- In Russia, the official sale of alcohol is declining due to increased excise taxes and economic difficulties, leading to an increase in moonshine.
- Large alcohol producers in Russia plan to increase prices for their products in 2026 due to rising excise taxes and inflation.
Moonshine brewing in Russia is destroying business / SZRU
Alcohol sales are falling in Russia, but it's not because Russians are quitting drinking. Due to rising excise taxes and the global economy, Russians are increasingly turning to illegal moonshine.
Why is the alcohol business in Russia declining?
The decline in official alcohol sales in Russia, which the authorities are trying to present as a positive social trend, actually hides serious structural problems, the Foreign Intelligence Service reports.
In 2025, sales of alcoholic beverages decreased by 9.3%, while the number of liquor stores and the volume of legal alcohol production decreased. However, this does not mean that Russians are abandoning alcohol en masse:
- The decline is occurring primarily in the legal segment, while consumers are moving into the shadows.
- Home brewing is becoming increasingly popular , displacing official retail.
There are about 2.5 million moonshine stills in Russia, and the annual production of moonshine can reach 200 million liters, a significant part of which is sold illegally. This indicates the state's loss of control over part of the consumer market.
The situation was also worsened by a sharp increase in excise duties: at the beginning of 2026, rates increased by 8.9–31%, most of all in the wine sector. Against the background of falling incomes and economic recession, this stimulates further shadowing of the market. In 2026, sales of legal alcohol in Russia will decrease by another 9–10%, which can hardly be considered a sign of social recovery,
– they write in the intelligence.
How might alcohol prices change in Russia?
In December, it became known that five major alcohol producers in Russia had notified retail chains of an increase in selling prices for their products in 2026, writes the Russian media outlet Kommersant.
- Novabev Group (Beluga vodka, “Arkhangelskaya”) warned of a 10% price increase;
- “KVK Group” (Koktebel cognac, Medoff vodka) reported an increase of 15-17%;
- “Alcoholic Siberian Group” (vodka “Five Lakes”, whiskey Sea Witch, “Krutoyar”) – by 10%;
- DK “Rust” (vodka “Russian Standard”, “Green Mark”) did not specify how much they will increase the cost of products.
Companies noted that they were forced to revise prices due to the increase in excise taxes and inflation, as well as the increase in the cost of borrowed funds.
Work, meetings, trips to nature – from now on you don't have to choose between a representative appearance and power, because with the Škoda Superb you choose all this plus the most important thing – comfort and safety for every member of your family. This flagship crossover combines the most modern driver assistance systems, high power and a carefully thought-out interior. The model is equipped with LED headlights, Side Assist and all-wheel drive to pave the way for yourself and your loved ones to where new discoveries await you.
How are business and industry declining in Russia?
-
Russia is recording its lowest rate of new business start-ups in 14 years. Tax hikes, rising insurance premiums, a slump in the consumer sector, and tight fiscal policies have led to a decline in the number of new businesses, especially in construction, retail, and services.
-
Russian industry is on the verge of its worst crisis yet due to Western sanctions, high borrowing costs and a slowing economy. Key sectors such as metallurgy, chemicals and engineering have seen significant declines in production.
-
Economists from the Central Bank of Russia have announced the beginning of a banking crisis in Russia, which is latent in nature, but indicates a high risk of “depositor flight”. Since 2022, the volume of cash in circulation in Russia has increased by 40%, indicating major problems in the banking system, and the population withdrew $12.8 billion from the banking sector in 2025.