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Russia Says Farewell to Cheap Vodka

20. November 2009 by Daniel 0 Comments

In the latest step in President Dmitry Medvedev’s mission to curb Russian alcohol abuse, a Russian government commission ordered a minimum price to be set for vodka.

 

A draft bill approved by the commission has the potential to raise the price of the cheapest vodka by more than 50 percent, according to reports. The minimum price for a half liter bottle of vodka is to be set at 89 roubles ($3.10).

 

The price hike will likely harm the alcohol industry in Russia, which is also set to endure planned increases in beer taxes.

 

Medvedev has taken drastic measures recently to curb alcohol consumption in Russia, the excess of which has tied itself to the country’s national identity. In August, a report indicated that the average Russian drank 18 liters (38 pints) of alcohol per year. New prices take effect in January 2010.

 

The effect this will have on Russia’s top five best-selling vodkas as well as the ridiculously expensive Russo-Baltique Vodka (1 bottle = $1.3 million) is unclear.