Russia to raise vodka prices again

Russia has unveiled plans to raise the minimum price of vodka again next year, in a further attempt to curb the nation’s alcohol consumption.

Increasing minimum prices for vodka in Russia could result in the growth of illegal vodka production

According to reports, the Russian government intends to increase the price of a half-litre of vodka by 17%, from the current RUB170 (US$5; £3) to RUB199 (US$6, £3.70), on 1 January 2014. The price would then rise further to RUB220 from 1 August.

The new price increases will boost the price of vodka by almost 30% against 2013, Reuters reported, citing a government draft decree.

Higher excise duties and an increase in the minimum price of a half-litre of vodka by RUB70 (US$2), were thought to be responsible for a 28.3% fall in legal vodka production in the first six months of 2013, compared with the same period last year.

The data, released by the State Statistics Service in July, has prompted critics to warn of an increase in illicit alcohol production and consumption in Russia.