Latvia emerges as Whisky hub amidst global sanctions, meeting Russia's thirst despite moral questioning
In the face of economic sanctions, Latvia has unexpectedly become the go-to source for whisky imports to Russia, navigating the restrictions and satisfying the nation's demand for the spirit. This unanticipated shift in the global alcohol trade has sparked moral questions.
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FollowRussians are not only feeling the economic pressure on the export front but also on the import front. Moscow is known for its large-scale exports across the world which majorly consist of Defence equipment and Oil/Gas. That has taken a major hit due to economic sanctions. However, Russia has also suffered on the import front since the war with Ukraine began in 2022.
Russia imports many items mainly consisting of food products and beverages. Countries exporting such items to Russia have significantly reduced their trade due to moral questioning and economic sanctions. Italy which was the largest exporter of whiskey to Russia has now been overtaken by a tiny Latvia.
Italy reduced its trade bill with Russia to comply with the Western sanctions on Moscow. In such a scenario, the Vladimir Putin-led nation has turned towards Latvia to quench its thirst. The nation with less than 2 million population has not developed its export machinery overnight. The companies which were previously exporting whiskey to Russia have just diverted their route.
The companies now export to Latvia from where the same products reach the Russian people. The principal destination is Latvia as the Baltic nation has emerged as a distribution center for Western companies looking to avoid sanctions. Similarly, Lithuania has taken the second place in the list of highest whiskey exporting nations to Russia.
Some companies such as Pernod Ricard are primarily dependent on Russian trade as they primarily cater to that specific market. Any disturbance in the trade on that front would result in innumerable losses. Latvia and Lithuania have both fiercely backed Ukraine in the war but have stayed mum on the economic aspects.
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