Russians To Sharply Increase Minimum Prices For Vodka

The sharp increase in excise taxes comes against the backdrop of a record budget deficit in the Russian Federation.

From January 2026, minimum retail prices (MRP) for alcohol in Russia will increase significantly. Two market sources told "Kommersant" that the RF Ministry of Finance is now discussing with industry participants new calculations, according to which the minimum retail price for 0.5-liter vodka is planned to be set at the level of 409 Russian rubles. - This is 17.1% higher than a year earlier.

According to the same estimates, the minimum price of brandy and similar products may reach 605 rubles per 0.5 liter, which is 28% higher than the current level. Cognac and whiskey, produced from raw materials aged for at least three years, may rise in price by 16% to 755 rubles from the beginning of next year. Kommersant's sources specify that the presented figures are still of a working nature and can be adjusted. The final parameters will be known by the end of December, when the Ministry of Finance will issue a corresponding order.

MRTs for vodka were introduced in 2009, and for brandy and cognac - in 2011. At the beginning of 2025, the minimum price of 0.5 liters of vodka increased by 16.7%, to 349 rubles, brandy - by 17.12%, to 472 rubles, cognac - by 17.09%, to 651 rubles. Experts interviewed by "Kommersant" believe that the new increase in the MRC will be a serious test for the industry.

President of the guild "Alcopro" Andrey Moskovsky warns of the risk of transition of the most price-sensitive consumers to the illegal sector. Pavel Shapkin, head of the Center for National Alcohol Policy Development, expects a more significant drop in demand in 2026 compared to 2025. Ladoga predicts a 5-10% decline in retail sales.

Pavel Shapkin also notes that the new price conditions will force producers to revise their assortment: some liquor products may move into related categories, such as "pseudorom" or "pseudo-doviska". According to Andrei Moskovsky, along with the growth of costs, the current increase in the MRC may lead to a wave of mergers, acquisitions and bankruptcies among producers, especially regional ones.

At the same time as the increase in the MRC, the government will significantly increase excise taxes on alcohol and tobacco from January 2026. As follows from the amendments to the Tax Code, excise duty on strong alcohol (over 18 degrees) will increase by 11.4%, up to 824 rubles per liter of pure alcohol. Wine will become even more expensive: excise duty on still wines will increase by 31%, up to Br148 per liter, while on sparkling wines - by 28%, up to Br160. Excise duties on tobacco products will also rise: on cigarettes - by 11.3%, on heating tobacco - up to Br10.915 per kilogram, on e-cigarette liquids - up to Br49 per milliliter.

The sharp increase in excise duties comes against the background of a record budget deficit: in 2025, the deficit of the treasury is planned at the level of Br5.7 trillion, which is five times higher than the initial calculations of the Ministry of Finance. In 2026, the deficit is expected to be Rb 3.786 trillion, in 2027 - Rb 3.185 trillion, in 2028 - Rb 3.513 trillion. By increasing excise taxes on "harmful goods" - alcohol, tobacco products and sweet drinks - the authorities expect to receive about Rb 213.7bn in 2026-2028.

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