Wine exports to Russia double despite War in Ukraine

 In Exports, News, Wine

Portuguese exporters of the country’s light, slightly sparkling white wine known as vinho verde are doing a brisk trade in Russia despite the War in Ukraine and biting sanctions.

In fact the number of bottles to the rogue state doubled in 2022 even through all marketing campaigns had been cancelled.
The Green Wines Region Viticulture Commission (CVRVV) cancelled all promotional campaigns in Russia because of the war, but exports have nevertheless doubled in value.
According to the CVRVV 1.2 million litres of Portuguese vinho verde from the North-East wine producing regions of Portugal were shipped to Russia worth €2.7 million, compared to 625,000 litres and €1.3 million in 2021, before the war.
Overall, exports to November 2022 grew 6% on 2021, attaining 30.1 million litres and €76.8 million.
In an interview with Lusa, the President of the CVRVV, Dora Simões said: “Despite marketing campaigns having been cancelled in the Russian market, trading agents from the region and their respective partners are free to continue their business”.
On exports to Russia, Dora Simões said that when the exporting process “was cut off, stopped”, there was in fact a moment when trading agents had no other option in terms of dispatching wine to Russia because “road and rail transport and logistics were cut off” because of the “various cuts” in Western ties with Moscow.
CVRVV data shows that in March and April (just after the invasion) there were no exports of green wine to Russia, but the rate of exports took off again for the rest of the year.
“Russia is a market which is really expanding and this expansion was going on at the time in which business was being negotiated” in what is hinted at as a ‘business already in the pipeline’ effect.
In April, the Green Wines Commission announced it was canceling promotional campaigns to Russia, repositioning its exports to other markets, like Mexico.
To November the Green Wines Region suffered a fall off in exports to Germany, down 1.6 million litres and €2.8 million.
Dora Simões says that it is difficult when comparing 2021 with 2022 because the period was marked by the effects of the war in Europe.
On the other hand, there had been significant increases in export values to the United States (+€1.5 million) and to the United Kingdom which saw an increase in exports by 170,000 litres and €1 million.