Russia Has Found a Way to Quench Its Thirst for Whisky In Spite of Sanctions — Thanks to This Country

Russian Premier Vladimir Putin speaks at his meeting with workers Aug. 31, 2010, while visiting Norilsk, about 2,150 kilometers (1,344 miles) northeast of Moscow, Russia. (AP Photo/RIA-Novosti, Alexei Nikolsky, Pool)

On Thursday, DW News reported that amid multiple sanctions resulting from Russia’s invasion of Ukraine, one country has emerged as a key player in supplying its whisky: Latvia.

According to the outlet, within the first nine months of 2023, Latvia exported three-quarters of approximately $266 million worth of whisky to Russia. These numbers were published by the Russian news agency, RIA Novosti. Lithuania emerged as the second largest exporter, selling Russia $29 million worth of whisky.

DW News claims that the majority of these alcoholic drinks are being shipped through Latvia by Western European companies which are registered there.

‘There seem to be some larger companies from Western European countries that simply use Latvia as a kind of distribution center,” an economist at the Bank of Latvia named Matiss Mirosnikovs said, according to to DW News. “So it’s not necessarily about production by Latvian industry, but about re-exports.”

In November, it was reported that due to Putin’s parallel import system, otherwise known as the “gray market,” famous whisky brands like The Macallan could be found on the shelves of Russian stores, despite the suppliers’ best efforts to make sure they never reach the country.

The combination of exports from other baltic states in combination with a parallel import system explains why Russia is able to secure whisky brands.

Yet still, brands that do business with the country might face reputational damage. According to London’s Moral Rating Agency, Pernod Ricard is still one of the biggest suppliers to the country. Though the media report the French spirits company intends to close up shop in the country, it would require months for Pernod Ricard to cease operations entirely.

“On the one hand, it is good to receive money from Russia because they can spend less money on military purposes,” Mirosnikovs said, according to DW News. “On the other hand, it allows for the elites to do what they want, namely lead as normal a life as possible, so they don’t want to push for change.”

Feb. 14 marked day 721 of Russia’s invasion of Ukraine.

On Friday, Reuters reported that Alexei Navalny, a vocal and “formidable” opponent of President Vladimir Putin, died while out on a walk at the “Polar Wolf” penal colony after he had been sentenced to 30 years in prison.

Alexei Navalny, center, and his wife Yulia, right, at a demonstration against the current Russian government. (Photo: AP Photo/Dmitry Lovetsky, File)

Reuters reported that Navalny “offered hope of an alternative future to Putin,” for urban Russians who oppose the current administration. Navalny was known as an outspoken critic of the administration run by “crooks and thieves” who were currently in charge.

His wife, Yulia, spoke at a Munich Security Conference, claiming she wasn’t sure about her husband’s death due to the “incessant” lies of the current administration.

“If this is true, I want Putin, his entire entourage, Putin’s friends, his government to know they will bear responsibility for what they did to our country, to my family, to my husband,” she said in a statement. “This regime and Vladimir Putin must bear personal responsibility for all the terrible things they have been doing to my country, to our country, Russia, in recent years.”

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