‘Within the first five months of 2006, the spirituous liquors output of our company decreased by 30% down to .12m decalitres,’ said Alexander Batuev, Research and Development Director of South Ural Vodka Distillery JSC of Ozyorsk, Chelyabinsk Region.

‘The overall setback in spirituous liquors production within Russia comes to 47%,’ Mr Batuev indicated.

‘The legislative novations had a negative effect on all the players on the spirituous liquors market, including the manufacturers, the wholesale traders, and the retailers. On July 1, the number of market participants will go down rapidly. From this date on, the individual entrepreneurs will forfeit the right to set up beer, wine and liquor stores. The manufacturers and beer, wine, and distilled alcoholic beverage merchant wholesalers will have to comply with an increase in the minimum authorized capital regulatory value. Thus the market is not expected to recover any earlier than November 2006,’ Mr Batuev said.