Latest news with #Russian-produced
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First Post
09-07-2025
- Business
- First Post
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
Reuters
31-03-2025
- Business
- Reuters
Exclusive: Commodity traders Gunvor, Vitol queue to stock up on Russian aluminium from LME storage, sources say
LONDON, March 31 (Reuters) - Major commodity traders Gunvor and Vitol are waiting to withdraw large volumes of Russian-produced aluminium from London Metal Exchange-approved warehouses in the South Korean port of Gwangyang, three sources familiar with the matter said. Gunvor and Vitol mostly focus on energy, but oil and gas trading giants more broadly have made significant moves into metals markets to explore opportunities offered by the global clean energy transition. It is not known why Gunvor or Vitol want the aluminium in LME warehouses in Gwangyang, where the lion's share of metal is mostly of Russian origin - deposited after Russia invaded Ukraine in 2022 as consumers shunned the metal. Vitol and Gunvor declined to comment. LME data shows metal earmarked to leave warehouses in Gwangyang run by ISTIM - a major operator of LME depositories in the port - at 97,750 metric tons at end-February, worth more than $250 million. Queuing time to take delivery was 81 calendar days, or more than 11 weeks, the data showed. Queues typically only form when large amounts of metal warrants, title documents conferring ownership, are cancelled in a short period of time. The sources said Vitol has already taken delivery of some aluminium from LME warehouses in Gwangyang. Gunvor has not yet taken any, other sources said. In late December, 84,000 tons of aluminium stored in LME warehouses in Gwangyang was cancelled, according to LME data, which also shows another 21,150 was cancelled in January and February. A small proportion was loaded out in January, while in February, 33,200 tons was removed and 26,800 tons of aluminium has been removed from LME warehouses in Gwangyang so far in March. Cancelled warrants at 30% of Gwangyang's total stocks of 123,325 tons on March 28 suggest another 37,125 tons of aluminium is due to leave the LME system. Russian President Vladimir Putin in February offered the U.S. the opportunity for joint exploration of the country's rare earth metals deposits, as well as the supply of aluminium to the U.S. domestic market, under a future economic deal. Putin said Russian companies could supply up to two million metric tons annually of the metal used in the transport, construction and packaging industries. Industry sources say major destinations for Russian-origin aluminium are China and Turkey, where users accept sanctioned metal produced in Russia. The U.S. Treasury Department and the British government in April last year banned the 148-year-old LME and the Chicago Mercantile Exchange (CME) from holding Russian aluminium, copper and nickel produced from April 13. Aluminium in Russia is produced by Rusal, which last year supplied nearly four million tons or more than 5% of the global total estimated at around 74 million tons. Aluminium prices on the LME held up for a few weeks after Donald Trump became U.S. president, but have dropped 7% since March 12 to around $2,540 a metric ton on concern about U.S. tariffs and a global trade war.
