Russia's alcohol system falters amid rising vodka prices
In Russia, the alcohol production and control system (EGAIS) has failed significantly. Vendors have been unable to receive deliveries for several days. Consequently, alcohol supplies are beginning to dwindle in many regions of the country, including Moscow.
On Wednesday, 25th March, the Federal Alcohol and Tobacco Market Regulation Service (RATK) issued a statement indicating that "due to a power outage, there may be delays in registering documents in the EGAIS system within the next five hours".
However, the technical issues remain unresolved to this day. An employee of a company involved in alcohol distribution told "The Moscow Times" that as a result of the failure, most of the documents sent to the system have not been processed. In Krasnoyarsk, he witnessed a partner's bar unable to sell alcohol because of the outage. The problems are, however, nationwide in Russia.
On Thursday, there was a report that everything had been fixed, but this was inaccurate. The situation is worst in the Moscow region and Siberia. The system has not been operational for three days, halting production and sales, the employee informed the portal.
On Thursday, both the website and email service ceased functioning. The Association of Alcohol Producers suspects the failure was caused by a hacker attack. However, this information has not been officially disclosed. It is still uncertain when the issue will be resolved.
The price of vodka in Russia is rising
As of 1st January 2025, the minimum retail price of a 500ml bottle of vodka in Russia increased to 349 roubles, up from the previous price of 299 roubles, according to a decree from the Ministry of Finance.
The increase affects not only retail prices but also costs at earlier stages of distribution. The minimum sale price by producers has risen from 246 roubles to 287 roubles, and the wholesale price has increased from 256 roubles to 299 roubles for 500ml.
The minimum prices for vodka in Russia have been regulated since 2009 as part of a strategy to combat illegal alcohol production. Raising prices aims to reduce the competitiveness of cheap, illicit alcoholic products. The last change in the minimum price occurred in July 2024, when it was raised from 281 roubles to 299 roubles.
