For the recent Victory Day parade in May, Moscow showcased wines from southern Russia and Crimea, the Ukrainian region annexed by Russia in 2014. The selection of these wines was purposeful, as President Vladimir Putin stressed that “only Russian wines” were served during the event commemorating the 80th anniversary of the defeat of Nazi Germany.

Since the onset of the full-scale invasion of Ukraine in February 2022, Russian wine production has surged by 25%, according to the International Organization of Vine and Wine (OIV). Although wine contributes modestly to the Russian economy, this increase plays a significant role in Putin’s broader strategy to promote economic self-sufficiency, aiming to counteract the effects of Western sanctions and to revitalize a struggling economy.

Currently, wine production is at its highest in a decade, with over a third of it originating from the Krasnodar region along the Black Sea. Domestic consumption has risen as well, reaching 8.1 million hectolitres, equivalent to more than 1 billion bottles in 2024.

In stark contrast, vodka production—the drink most synonymous with Russia—has witnessed a decline, dropping by 26.3% to 7.6 million hectolitres last year. This represents the lowest vodka output in nearly a decade, although it still equates to about seven bottles annually for every Russian, including children.

However, the booming sales of domestic wines present a double-edged sword for Moscow. This growth is partly driven by sanctions that have restricted the availability of many Western wines from supermarket shelves and restaurant menus in Russia. In response, last year, the Russian government raised tariffs on wines from countries deemed “unfriendly,” including the US and major European wine producers, doubling the duties to 25%.