In Russia, alcoholic beverage production is declining, despite the fact that Russians drank more in 2024 than at any point in the last eight years. In the first half of 2025 alone, the production of spirits dropped by over 16%, according to the Federal Service for Alcohol Market Regulation.
More specifically, vodka production fell from 334 million liters in 2024 to 313.8 million liters in 2025, a drop linked to rising alcohol prices and the ban on exports to the U.S. and EU as part of Western sanctions over the war in Ukraine.
In the 1990s, after the collapse of the USSR, vodka was used informally as a form of currency in Russia, as it held its value more reliably than the ruble during times of rampant inflation.
Meanwhile, sales of other spirits like rum, whiskey, brandy, and tequila rose by 10.2% in 2025, reaching 3.2 liters per capita annually and surpassing vodka in some parts of the country. Nevertheless, vodka remains Russia’s top alcoholic drink overall, accounting for 60% of national alcohol sales.
Vodka holds deep cultural significance in Russia — so much so that, during the economic collapse of the 1990s, it effectively functioned as an informal currency. As hyperinflation rendered the ruble nearly worthless, vodka was often used as a means of trade, payment, or barter, especially in rural areas.
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