BUSINESS

Having already been indexed on Jan. 1, vodka is set to face a price hike once again this year on July 1, with Russia’s alcohol watchdog raising the minimum retail price for a 0.5 liter bottle of vodka to 125 rubles, Kommersant reported on Tuesday.

Thus the cost of the cheapest bottle of vodka will rise by 28 percent.

Wholesale price will rise from 85.50 rubles to 109 rubles.

The watchdog said they have considered the interests of all legal participants of the market when determining the price, including those in the regions.

The head of the Federal and Regional Alcohol Markets Research Center, Vadim Drobiz, told Kommersant that just over 10 percent of the total volume of legal vodka sold would retail at 125 rubles. This price would most likely be offered by producers that have their own private brand-name chains of shops. For the other 90 percent of legal Russian vodka, prices would more likely start from 145 rubles for half a liter.

All alcohol prices rising

Apart from vodka, Russia’s alcohol watchdog would also set a minimum price for cognac-style brandy. A half-liter bottle of three stars quality brandy will cost no less than 191 rubles wholesale and 219 retail (current prices are 167 and 193 rubles respectively).

Prices for other drinks over 28 percent alcohol would be determined in proportion to the price of vodka, according to the amount of alcohol contained.

Since July 1, a new price for alcohol will be set up for the producers too – 350 rubles per decaliter minus taxes and excise duty (280 rubles at the moment).