The Russian government plans to invest €250 million (US$316 million) to expand the wine industry in Crimea by the year 2025. Under the plan, vineyard plantings are marked to be expanded from the current 37,300 hectares to 100,000 hectares with the goal of having the wine industry generate 15% of the gross product of the region. By 2025, the Russian government plans for wine production in Crimea to increase from the current 83 million cases to 600 million cases per year allowing for the significant reduction of imports which currently account for 80% of Russia’s market. To help incentivize this expansion, the government plans to set an excise duty of zero, offer simplified licensing and registration systems, give permission for advertising Crimean wine through government channels, and set quotas for Crimean wine in restaurants. In addition, a formal holding known as Wines of Crimea will be established to manage Crimea’s wine producing assets which will include Massandra, the region’s oldest and recently nationalized winery, and the National Institute of Vine and Wine.
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