French wine exporters advised to exercise caution in Russia and Ukraine

ccording to Eurostat data, the European Union exported 2.6 million hectolitres of wine to Russia and 462,926 hl to Ukraine in 2021. Even though volumes have shrunk over the past few years, as Russia has persistently introduced regulations that are increasingly protectionist, EU exports to both countries remain significant. Whilst the Ukrainian market has, understandably, come to a standstill, business continues in Russia. However, the 30% devaluation of the rouble has brought most trade to a halt.

“The devaluation, combined with the sanctions against Russian banks in the Swift system and the fact that Visa, Mastercard and American Express have announced that their operations in Russia will be closed, has meant that Russian importers have stopped imports”, explains Dr Ignacio Sánchez Recarte, Secretary General of the Comité Européen des Entreprises du Vin (CEEV) in Brussels. He adds: “Even if both countries remain in regions covered by export credit insurance, it would now be extremely difficult to get paid, so the recommendation to companies is to be extremely careful”.

Some European companies have already had first-hand experience. The Spanish agricultural co-operative Anecoop, in the Valencia region, found itself with 11 containers of wine, or 189,640 bottles labelled specifically for the Russian market, which could not be unloaded in Russia and had to turn back. It has 15 containers still at sea. Another threat that cannot be ruled out is sanctions, or even a boycott of European products if a tit-for-tat situation were to emerge in trade relations.