Russia-Ukraine, the war frightens the world and makes Italian wine tremble

Italy has close economic and trade ties with both Russia and Ukraine, especially in the fields of agricultural products such as wine and grain, and energy sources such as natural gas. There’s no denying that the outbreak and escalation of the war between Russia and Ukraine and the news that some Western countries have announced that they will impose economic sanctions on Russia have had a significant negative impact on the global economic situation.

The war between Russia and Ukraine, the “suffering” of Asti Spumante

Data from the Italian National Institute of Statistics (ISTAT), provided by the Italian Wine Federation (Federvini), show that Russia is the 10th largest export destination for Italian wine. In the first 11 months of 2021, Italian grape exports to Russia amounted to 152.3 million euros, an increase of 20.7% compared to the same period in 2020. In the same period, Italian wine exports to Ukraine amounted to 57.4 million euros. If the December 2021 figures are added, Italian wine exports to these two countries will be even higher (the average value of wine exports in December is usually more than twice as high as in other months, due to the Christmas holidays, which are the peak season for wine products).

With the war between Russia and Ukraine and the ensuing sanctions against Russia, Italian wine exports to Russia will inevitably be affected, with Asti sparkling wines being the most affected.

The Italian wine industry is concerned about the impact of the war between Russia and Ukraine

Russia and Ukraine are very important markets for Italian wine, especially the Russian market, which has grown rapidly in recent years. 2021 Italian wine exports to Russia and Ukraine will be worth about 250 million euros, two-thirds of which will come from Russia and one-third from Ukraine. Russia is one of the most important markets for Italian wine, and Italian sparkling wine is one of the most popular products in the Russian market.

Data from the Italian Agricultural Confederation (Confagricoltura) shows that Italy’s wine exports to Russia in 2020 totaled €297 million, including €179.8 million in bottled wine exports.

Russia is one of the most important markets for Italian sparkling wines and is very important for Piedmontese wines, especially Asti Spumante. 2021 Italian sparkling wine exports to Russia amount to 116 million euros, with more than 12 million bottles of Asti Spumante, the equivalent of Asti DOCG guarantees a quarter of the annual production of AOC sparkling wine, which spans the provinces of Alessandria, Asti, and Cuneo in Piedmont, with more than 9,700 hectares of vineyards.

Is the impact of the Russian-Ukrainian war on Italian wine limited to the import and export of products?

Obviously, the answer is NO!

The links between Italy and the Russian wine world are not limited to the import and export of products. Many Russians have also invested in Italian wineries in the past decades, especially in Piemonte and Toscana.

For example, Roustam Tariko, owner of the Roust Group, has been running the historic Asti sparkling wine estate Gancia since 2011. He is a minority shareholder of Tenute di Toscana through its subsidiary “Tenute del Mondo” group. The holding company is 73.6% owned by the Frescobaldi Group, which owns several top Italian wine brands such as Masseto, Ornellaia, Luce Della Vite, and Castelgiocondo. In addition, there are many Russian-invested vineyards and estates in Toscana’s Maremma, Lombardy’s Franciacorta and Umbria regions.

May the world be at peace

The war between Russia and Ukraine has not only caused disasters in Russia and Ukraine but also affected the economic development of many regions and even people’s lives. We hope that world peace will no longer be a mere slogan and that the conflict will end soon with the least possible loss of life and economy.