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Quicksplained: Why Russia is making less vodka even though Russians are drinking more

According to data from Russia's Federal Service for Alcohol Market Regulation, the first half of 2025 saw liquor production go down by 16 per cent. Which is strange as people in Russia are drinking more this year compared to 2024. read more Vodka is the drink for every occasion – from weddings to funerals – and is deeply embedded in the Russian culture and psyche. Reuters Vodka has long been associated with Russia. While the origins of the iconic drink comprising ethyl alcohol (fermented grain, rye, wheat, potatoes, or sugar beet molasses) and water are lost to history, we know its name comes from voda – the Russian word for water. It is the drink for every occasion – from weddings to funerals – and is deeply embedded in the Russian culture and psyche. Which is why many would be surprised to know that the country is making less vodka than ever – even though Russians are drinking more. STORY CONTINUES BELOW THIS AD But what happened? What do we know? Why is this the case? Let's take a closer look: What happened As per data from Russia's Federal Service for Alcohol Market Regulation, the first half of this year saw the manufacture of liquor go down by 16 per cent. Which is strange that more people in Russia are drinking this year compared to 2024. The production of Vodka has also taken a hit in 2025. This year, 31.38 million decaliters of Vodka has been produced compared to 33.40 million decaliters of Vodka in 2024. Interestingly, Russians drank more rum in 2024 than in the same period of past eight years. People are also choosing to drink more rum, whiskey, brandey and tequila, according to Russian financial auditing firm, Finexpertisa. Why is this happening? Vodka production is on the decline for multiple reasons. This includes the escalating price of alcohol and the ban on Russian exports to the EU and the US in the backdrop of the Ukraine war. This ban has significantly decreased revenue for Russian vodka producers, according to the Strategy Partners consulting agency. Bottles of Russian vodka are displayed at the Russian restaurant and Karaoke club 'Chalet Berezka' in Dubai, United Arab Emirates, May 9, 2024. REUTERS/Rula Rouhana Russian vodka exports generated just $34.6 million in 2024, according to the official RIA Novosti news agency. That's a massive decrease from 2021 when vodka exports earned $168.3 million from Russia. Unfortunately for them, Russia invaded Ukraine the next year. A 2023 report quoted Russian beverage industry executives as predicting those numbers could rise as high as $180 million in the years ahead. They claimed they could increase sales to China, Turkey, India and Vietnam. STORY CONTINUES BELOW THIS AD That hasn't happened. The lower sales also comes as Russia's Ministry of Finance in January raised the minimum price of a half-litre bottle of vodka from $2.99 (Rs 256) to $3.49 (Rs 299). Interestingly, Kazakhstan remains the only large market left for Russian-produced vodka. Kazakhstan comprised over 92 percent ($32 million) of Russian vodka exports in 2024. China was far behind with total imports of just $1.5 million. Turkey, South Korea and Latvia comprised the other top importers of vodka. According to reports, Poland has now overtaken Russia when it comes to exports of spirits including Vodka. With inputs from agencies