GAIN Report - RS5322 Page 2 of 2

Voluntary Report - public distribution

Date: 12/31/2005

GAIN Report Number: RS5322

RS5322

Russian Federation

Wine

New Spirits Law Amended

2005

Approved by:

Eric Wenberg, ATO Director

American Embassy, Moscow

Prepared by:

Nadia Dmytriw

Report Highlights:

Russia significantly amended its new spirits law, reducing substantially the law's potential to disrupt the import of spirits, wine, and beer. The new law expected to be signed over the New Year's weekend holiday, still changes the procedures for importation of these products and exporters should remain in contact with importers on the law's impact.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Moscow ATO [RS4]

[RS]


On December 23, in its third reading, the State Duma accepted a packet of amendments to the State Regulation Law (SRL – Law On Production and Turnover of Alcohol), suggested by the Association of European Business (ABC). According to Alexander Romanov, External Affairs Director the groups alcoholic beverages committee, the greatest accomplishment in getting the amendments accepted is the continued application of excise stamps outside of the Russian Federation. The SRL originally called for abolishing the standard practice of applying excise stamps outside of the Russian Federation. Had this amendment not been accepted, imports would have been drastically disrupted.

Two other significant amendments to have been accepted by the Duma are securing the most effective element of trademark protection as a Federal Law and extending the validity period for products bearing current/ “old” excise stamps. Products may continue to be imported with the current stamps until April 1, 2006. All imported products bearing the current/ “old” stamps must be sold or removed from the shelf by July 1, 2006.

The SRL and amendments are expected to be signed into Federal Law January 1, 2006. While the unexpected acceptance of the packet of amendments dampens the SRL’s most disruptive measures, the industry still expects complications during the first several months of 2006. This is due to the logistics of printing new excise stamps and bar codes and rapidly turning over elite alcohol products bearing old stamps. For more detailed information on the SRL and these measures, please see Moscow ATO GAIN Report RS5316 available from www.fas.usda.gov at Attache Reports.

UNCLASSIFIED USDA Foreign Agricultural Service