During the first week of September the Russian parliament will be debating whether or not to create a state monopoly on wine production. If passed, wine production will only take place at state-owned operations or at operations where the state owns a majority stake. Oleg Nilov, a member of parliament and an author of the initiative, believes that a monopoly would increase quality, increase state revenues, and would give shelf space to wine produced in Crimea and Krasnodar resulting in increased production from these regions. Others believe that the move would ensure that Russia remain independent of international markets and immune to possible future bans. However, the Director of the Center of Research of Federal and Regional Alcohol Markets (CRFRAM) states that a monopoly would create an unprofitable industry and create an atmosphere primed for corruption. A monopoly would also prompt contraband wines being smuggled into the country and a decline in the quality of domestic products.
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