Russia’s Nascent Whisky Industry Grows as War in Ukraine Rages On

Russia is developing its own whisky landscape despite ongoing conflicts with Ukraine. (Photo: CTK via AP Images)

Reuters reported on Tuesday that Kemlya Distillery, a Russian whisky brand, hopes to turn local drinkers away from vodka and onto premium whisky. The outlet shared that in light of recent trade sanctions against the country due to the ongoing Russia-Ukraine War, a glut of imported whiskies has given way for the country to develop its own domestic whisky landscape.

For Kemlya Distillery, quality is what the brand wants to focus on.

“The maths is simple,” Master Blender of Kemlya Distillery Gennady Silivanov told Reuters in a statement. “A Russian man would buy one bottle of quality liquor instead of 10 bottles of cheap stuff like vodka or something like it, and drink less.”

The outlet shared that Kemlya Distillery has premium expressions within its portfolio, such as “Russian Oak” and “Balkan Virgin,” which retail for 11,000 and 16,000 roubles ($115 – $167.) The brand shared it has been distilling whisky since 2015, and a core blended whisky is in the pipeline. The more affordable expression should drop at the end of 2026.

Reuters reported that sales of domestic Russian whisky have tripled, according to NielsenIQ Russia in August. The outlet reported that a glut of imported scotch whiskies due to the ongoing conflict is most likely the reason.

Since Russia’s invasion of Ukraine, multiple distributors, such as Pernod Ricard, have shuttered their operations within the country. Though the country could still access imported whiskies such as Johnnie Walker through parallel imports or the “grey market,” Scotch imports are still on a steep decline.

“Exports of Scotch Whisky to Russia have fallen from 28 million pounds ($36.6 million) in 2021 to 12.7 million pounds in 2023,” a Scotch Whisky Association spokesperson informed the outlet. “In addition, shipments to indirect routes to market have also decreased significantly.”

Producers like Kemlya appear to be trying to access their share of the market. Yet Kemlya Distillery still faces its share of obstacles, like access to equipment. Ongoing trade embargoes have made it difficult for the distillery to get equipment like pot stills used to produce scotch whisky, which the brand seeks to emulate. The brand has since turned to China.

“Chinese engineers have replicated one of the Scottish models,” Silvanov explained to Reuters. “The exact shape of pot stills that we specifically needed.”

In June, Russian data analysts shared that the country broke a nine-year record for alcohol consumption. The study revealed that Russian drinkers have pivoted from wine in favor of harder spirits, like vodka, cognac, and liqueurs. The Moscow Times reported that the price of domestic vodka had dropped significantly, which has led Russian citizens to purchase more.

The real question involving the distillery’s success will be whether or not consumers are willing to pay higher prices for more premium spirits during such uncertain times.

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