Europe bans exports of wines and spirits priced over €300/bottle to Russia

It is prohibited to sell, supply, transfer or export, directly or indirectly, luxury goods in the attached list, when their value exceeds 300 euros per item, to any private individual or legal person, entity or body in Russia or for use in Russia”, states a law adopted on 15 March by the European Council as part of the fourth package of sanctions against Russia following its invasion of Ukraine. Among the 20 categories of products listed in the appendix to the law are horses, caviar, diamonds, truffles, leather goods, musical instruments, cars... and wines and spirits. The list details the European Commission's March 11 announcement and covers all wines and spirits priced over €300 per bottle: all still wines in bottles and in bulk (customs codes 2204 21 and 2204 29, covering PDOs and PGIs), all Champagnes (2204 10 11) and Crémants (2204 10 93), and all spirits under 80% ABV (2208 00 00: including Cognacs, Armagnacs, etc.). The €300 ceiling price has a specific purpose: “We don't want to hit the Russian population, but target the oligarchs – the elite who support the government and have the resources to live in luxury”, said the European Commission, which is replicating the system imposed on North Korea since 2019.

Officially ranking fortieth among overseas destinations for French wines, as regards direct exports (totalling 35,000 hectolitres in 2021, +18% over a year), Russia is actually in fifteenth position when total French wine imports are taken into account (totalling 19,800 hl, +22%) according to Business France statistics based on customs data. Via a system of re-exports, the Russian market is supplied primarily by the Baltic countries, most notably Latvia and Lithuania.