Price hike on vodka to fight alcoholism

With hundreds of thousands of Russians dying of excessive drinking every year, the Kremlin says it plans to hike minimum prices for strong spirits, including vodka. According to a draft decree published by the government on 29 November 2013, the cheapest half-litre bottle of vodka will cost 199 rubles (USD 6.0/EUR 4.40), up from the current 170 rubles, as of 1 January 2014.

It also noted the price for strong spirits would further rise to 220 rubles per half litre from August 2014, bringing total increases next year to almost 30 percent.

Already in 2010, Russia hiked prices for vodka and beer to combat alcoholism. Since then the government has further put a ban on alcohol advertising, limited the sales hours and banned kiosks from peddling alcohol.

Apparently, to little or no avail.

Many observers suspect that the planned price hike will have hardly any effect on vodka consumption as people will only turn to “samogon” or moonshine, which is currently estimated to represent 20 or 25 percent of total vodka consumption.

In Russian villages, samogon is usually available for a quarter of the price of legal vodka.