| It has been three months since Russia was due to lift the ban on wine imports from Moldova , an erstwhile USSR State. But the ban continues. With no exports to Russia and restricted supplies when allowed, the wine industry is in deep crisis, reports RadioFreeEurope.
Vadim Gustov, the head of the CIS Committee of Russia's upper house of parliament, the Federation Council, announced late last month that some of Moldova's vintage wines may return but only after a couple of months.
Exports were originally expected to resume at the beginning of 2007. But it now appears that Moldova will spend most of this year with no wine exports to Russia . Even when they resume, they will be highly restricted.
After the collapse of communism, Moldova lost a large part of its manufacturing sector. This was due in part to economic collapse, but also to the fact that the country's industrial hub was located in the breakaway region of Transdniester. Moldova was forced to rely even more heavily on agricultural and wine exports.
Prior to the ban, the wine industry was estimated to account for about 25 percent of Moldova 's gross domestic product (GDP), with 80 percent of that wine exported to Russia .
But in March 2006, Russia 's chief sanitation officer, Gennady Onishchenko, announced a ban on the import of Moldovan and Georgian wines. He said the wines posed a health risk because they contained pesticides, heavy metals, and other hazardous substances.
Many observers criticized the move as political retribution for both countries' pursuit of closer relations with the West. USA and the EU, which have stricter guidelines and enforcement than Russia , have continued to import Moldovan and Georgian wine.
Moldova threatened to block Russia 's entry into the WTO. Moldovan President Vladimir Voronin and Russian President Vladimir Putin reached an agreement in November last year, whereby Moldova would support Russia 's entry into the WTO, and Russia would lift its embargo on Moldovan wine.
Cozub of the Moldovan Wine Exporters' Union describes some of the problems facing Moldova 's wine industry in the coming year. "The [raw] materials have to be immediately sold or processed, for they cannot be stored any longer," he said. "Processing requires money, which we don't have. I think that in 2007 the crisis in our wine industry will be deeper than last year," he added.
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During my trip to Prowein in Germany last month, I had met several Russian journalists with whom I touched this subject in brief. They were divided in their opinion. Though they could not deny that there were political overtones, they felt some of the quality was also suspect due to improper quality specs. and controls as they should be.--Editor |
