Sanctions drive Russian wine boom, but taste test still favours Western vintages

Western sanctions have cut off export markets for Russian wine but fuelled a surge in domestic demand, creating growth opportunities for local producers. At Nikolaev & Sons in Russia's Krasnodar region near the Black Sea, co-owner Mikhail Nikolaev says the estate specialises in sparkling wine from Chardonnay and Pinot Noir and follows the traditional method of ageing on lees.

He argues the climate gives them “the potential to be within the top sparkling regions of the world.” The winery currently produces 60,000 bottles a year and plans to double output by 2032 to meet rising home demand. "Right now is the moment where we can potentially grow considerably," Nikolaev says.

Domestic wines accounted for about a quarter of the Russian market a decade ago; they now make up nearly two-thirds after sanctions reduced the availability and raised the cost of foreign bottles. The Kremlin has also promoted local produce, and Russian wines now dominate supermarket shelves.

Denis Rudenko of the Russian Sommelier Society, who has followed the industry for 25 years, says: "If we are talking about mass market wines, there is no difference." He adds Russia could develop collectible wines within the next two decades. But a blind tasting in a Moscow wine bar suggested limits to wine patriotism.

Key Topics

Business, Nikolaev & Sons, Krasnodar Region, Russian Wine, Sanctions, Kremlin