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When Russia said NO, Europe said YES. Lessons from the 2006 embargo

March 27 marks 19 years since Russia imposed its first embargo on Moldovan wines.

In 2006, Rospotrebnadzor, Russia’s consumer protection agency, announced a ban on Moldovan wine imports, citing excessive levels of pesticides and heavy metals, bani.md reports.

According to the Ministry of Agriculture, in 2005, Moldova exported approximately 130 million liters of wine, mostly in bulk, valued at $313 million, with 90% of shipments destined for the Russian market. However, in 2006, after the embargo was imposed, exports halved to 67 million liters, worth $138 million, with 0% going to Russia.

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The impact on Moldova’s wine industry

In 2005, the wine sector accounted for over 9% of Moldova’s GDP and generated about 25% of national exports. By 2006, its GDP contribution dropped below 6%, while wine exports declined by more than 55%.

At the time of the ban, Moldova had 150 wine companies, and total losses amounted to $180 million within ten months, according to bani.md. Thousands of industry workers were either laid off or placed on technical unemployment.

The shift toward EU and global markets

To address the crisis, the Moldovan government diversified export markets and aligned quality standards with European regulations. The national wine brand “Wine of Moldova – A Legend Alive” was introduced, alongside investments in modern winemaking technologies and international certifications.

As a result:

• Moldova exported wine to 65 countries, accounting for 82% of total production.

• Exports to Russia dropped to 7%, while shipments to the EU reached 60%.

• Over the five years, wine exports grew 15% in value and 10% in volume, with key markets including Romania, Poland, China, the United States, South Korea, and Japan.

Moldova’s wine exports in 2024

The latest data from the National Office of Vine and Wine shows that, in the first seven months of 2024, Moldovan wine exports increased by 17% in volume and 21% in value compared to the same period in 2023, reaching 71 million liters and $110 million, respectively.

The United States became the top market for bottled Moldovan wine, accounting for 33% of total exports, followed by Romania with 16%, bani.md reports.

A turning point for the Moldovan wine industry

The 2006 embargo was a turning point for Moldova’s wine sector, pushing it toward EU and international markets. Beyond mere survival, investments in quality and market diversification strengthened Moldova’s global wine presence, ensuring sustainable industry growth through 2025 and beyond for the country’s 60 wine companies.

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