2006 Russian ban of Moldovan and Georgian wines

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A Komsomolskaya Pravda poster reads in Russian: "Respect Yourself and the Motherland -- DON'T DRINK Georgian Wine!" (May 5, 2006) KP Don't Drink Georgian Wine poster.jpg
A Komsomolskaya Pravda poster reads in Russian: "Respect Yourself and the Motherland — DON'T DRINK Georgian Wine!" (May 5, 2006)

The 2006 Russian import ban of Moldovan and Georgian wines began in late March 2006 and created a diplomatic conflict between the Republic of Moldova and Georgia on the one hand and Russia on the other. Wine trade with Russia was responsible for 80-90% of the total wine exports in both countries. [1]

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The Chief Sanitary Inspector of Russia Gennadiy Onishchenko claimed that heavy metals and pesticides had been found in Georgian and Moldovan wines and that they were falsified alcoholic products labeled as wines. The Russian Consumer Agency claimed that it had examined 21 sorts of Georgian wine sold in Moscow and concluded that 85.7% did not comply with sanitary requirements. Pesticides were supposedly discovered in 60% samples of Moldovan and 44% samples of Georgian wine. [2] However, the Moldovans claimed that no proof was provided by the Russians and that dozens of countries across the world imported Moldovan wines without any reported problems. Moldova argued that the ban amounted to economic blackmail. [3] Seven Georgian wineries were later closed down after the government revision revealed that they had produced falsified wine. [4] [5]

In May 2006, Georgian Defense Minister Irakli Okruashvili stated that "many [Georgian] wine producers exported falsified wine to Russia, because Russia is a market where you can sell even turds". [6] Okruashvili thought that Russia's decision to ban the import of Georgian wines "was not a surprise" for Tbilisi. [7]

Russia accounted for 80% of Georgian wine sales, and the ban was a major blow to the industry. Georgian producers swiftly admitted that wines were regularly faked. Prior to the ban, the Georgian government closed down several testing laboratories in Georgia, and several wineries were made to dump their product. [8] Seven Georgian wineries were closed down after the government revision revealed that they had produced falsified wine. [9] [10] Production of falsified wine in Georgia for the rapidly expanding Russian market had been "big business for the last decade" according to the Western press. [11]

The ban on wine imports came at a time of worsening relations between the countries. The differences involved the Rose Revolution and pro-NATO/pro-EU moves in Georgia and a divergence of the Russian and Moldovan positions regarding the future of Transnistria. A year earlier, the Russian Duma had demanded a ban on Moldovan wine imports, because Moldova was considered to pursue anti-Russian policies. [12]

EU's external relations commissioner Benita Ferrero-Waldner stated that the EU was worried about what she called an "embargo" against Moldova, but the EU couldn't take any measures since Russia was not a member of the World Trade Organization. [13] The president of NATO Parliamentary Assembly Pierre Lellouche also said that he was deeply concerned about the Russian ban on Georgian products. [14]

From 5 May to 6 May 2006, the Russian government also banned the import of Borjomi (Russian : Боржоми, Georgian :ბორჯომი) and Nabeglavi (Russian : Набеглави, Georgian :ნაბეღლავი), two popular brands of Georgian mineral water. [15] The government claimed that it was a health hazard since it failed to meet water purity standards. The Georgian government responded by stating that the action was an expansion of the wine embargo [16] and a part of a political campaign to punish the country for pro-Western policies, a claim President Mikheil Saakashvili of Georgia reiterated at the Conference on Common Vision for Common Neighborhood held in Vilnius, Lithuania, from May 1 to 4, and attended also by the presidents of the three Baltic states, Poland, Ukraine, Moldova, Romania, Bulgaria and the United States Vice-President Richard Cheney. [17]

Neither the Georgian or Moldovan wines nor the Borjomi or Nabeglavi mineral waters had been banned nor restricted in any other country besides Russia.[ citation needed ] One Russian expert has also criticized the Russian ban on "Borjomi". [18] Georgia threatened to block Russia's bid to join World Trade Organization in response to the ban, with Russia requiring approval from Georgia, the United States and Moldova at this point to join WTO. [19]

The drink ban appeared to exacerbate tensions between Russia and the Government of Georgia. The 2008 South Ossetia war would occur later that year. [20] Following the conflict, Georgia also withdrew from the Commonwealth of Independent States (CIS), a bloc of several post-Soviet countries. [21]

In 2013, Georgian wines were sold in over 50 countries, including Ukraine, which became the key market after the Russian ban. However, sales later fell sharply, to about one third of what Georgia exported prior to the ban. [22]

Return of Georgian wines to the Russian market

In early 2013, negotiations between Russian and Georgian authorities and wineries were held in Moscow. Russia agreed to send inspectors to about 60 wine producing facilities in Georgia. According to an industry expert in the Georgian government, local wine products had a chance to return to the Russian market in 2013, and the country planned to grow wine production by 50% in 2015, almost reaching pre-ban levels. However, wine industry experts in Russia expected Georgian wines would enjoy limited interest in Russia, at about 1% market share, compared to 10% before the ban. The main reason is that the market became much more competitive since 2006, with manylocal, Western European, and South American wine brands, especially in the mid-price segment. [23]

The ban was lifted by the end of 2013. [24]

See also

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<span class="mw-page-title-main">Economy of Georgia (country)</span>

The economy of Georgia is an emerging free market economy. Its gross domestic product fell sharply following the dissolution of the Soviet Union but recovered in the mid-2000s, growing in double digits thanks to the economic and democratic reforms brought by the peaceful Rose Revolution. Georgia continued its economic progress since, "moving from a near-failed state in 2003 to a relatively well-functioning market economy in 2014". In 2007, the World Bank named Georgia the World's number one economic reformer.

<span class="mw-page-title-main">Economy of Moldova</span>

The economy of Moldova is an emerging upper-middle income economy, Moldova is a landlocked Eastern European country, bordered by Ukraine on the East and Romania to the West. It is a former Soviet republic and today a candidate member to the European Union.

<span class="mw-page-title-main">Transnistria</span> Unrecognised state in Eastern Europe

Transnistria, officially known as the Pridnestrovian Moldavian Republic and locally as Pridnestrovie, is a breakaway state internationally recognized as part of Moldova. It controls most of the narrow strip of land between the Dniester river and the Moldova–Ukraine border, as well as some land on the other side of the river's bank. Its capital and largest city is Tiraspol. Transnistria is officially designated by the Republic of Moldova as the Administrative-Territorial Units of the Left Bank of the Dniester or as Stînga Nistrului.

<span class="mw-page-title-main">Borjomi</span> Town in Samtskhe-Javakheti, Georgia

Borjomi is a resort town in south-central Georgia with a population of 11,173. Located 165 km from Tbilisi, it is one of the six municipalities of the Samtskhe–Javakheti region and is situated in the northwestern part of the region in the picturesque Borjomi Gorge on the eastern edge of Borjomi-Kharagauli National Park. The town is noted for its mineral water industry, the Romanov summer palace in Likani and Borjomi-Kharagauli National Park. Borjomi mineral water is particularly well-known in Georgia as well as other countries that were part of the former Soviet Union; the bottling of mineral water is a major source of income for the area. Because of the supposed curative powers of the area's mineral springs, it is a frequent destination for people with health problems. Borjomi is also home to the most extensive ecologically-themed amusement park in the Caucasus.

<span class="mw-page-title-main">Irakli Okruashvili</span> Georgian politician

Irakli Okruashvili is a Georgian politician who had served on various high-ranking posts in the Government of Georgia under President Mikheil Saakashvili, including being the Minister of Defense from December 2004 until being dismissed in November 2006.

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Nabeglavi is a mineral water from Georgia.

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