Russian vodka fans are outraged after the Finance Ministry raised the price of a half-liter bottle by 17 percent, effective New Year’s Day. Russia is the world’s largest vodka manufacturer, accounting for more than 30 percent of global production.
Over 90% of Russian-made vodka is drunk domestically, making it one of the country’s most popular beverages. A bottle will now cost $3.15 (349 rubles) on January 1st, up from $2.70 (299 rubles) before—a 50 ruble hike.
This follows a 6.4 percent increase in June 2024, bringing vodka prices up by a whopping 23.4 percent in just six months. The vodka price increase is just another financial blow for Russian customers who are already dealing with rising prices for basic foods such as butter and potatoes.
Inflation in Russia is over 9.5 percent, prompting the Central Bank to boost interest rates to a record 21 percent. Other alcoholic beverages that have seen price hikes include brandy and cognac, both of which have risen by roughly 17%.
Smokers are also feeling the pinch, with the lowest price for a pack of twenty cigarettes rising five percent to $1.22 (135 rubles). These price increases come after Russia’s retail alcohol sector had a good year, with record sales, according to The Express US.
From January to October 2024, alcoholic beverage sales totaled 184.2 million decaliters.
Russia’s booze sales volume has reached a new high for the first time since 2017, with surveillance data indicating that vodka remains the top seller. The recent rise in alcohol prices is said to be related to the current crisis in Ukraine, raising speculation that the price increases are helping to fund Russia’s military actions.
In 1981, during the late Brezhnev era, when the Soviet Union was embroiled in Afghanistan, the cost of vices such as alcohol and cigarettes skyrocketed, causing considerable public displeasure, as represented in a popular song of the time. The words of this protest song from the past rang strongly: “Vodka became 7 and 8/ We are drinking anyway/ We will not give up/ Tell Ilyich (Lenin)/ We can handle 10/ But if it becomes 25/ Then it is Revolution again!”
The spike in booze prices and subsequent wrath come as Putin continues to fuel worries that World War III may break out. Putin offered a scary new warning, stating, “We will always respond to any challenge.”
According to reports, the despot delivered the stern message during a state TV broadcast, directed at leaders who have supported Ukraine since Russia’s full-scale invasion in 2022. According to Mail Online, Putin told reporters yesterday that he does not want to terrify anyone, but that there are increasing dangers. And we see what our adversary is doing today: intensifying the issue. If they choose to, they can live a horrible life and escalate.” He went on to say, “We will always respond to any challenge.”