Experts against Russian state alcohol monopoly, but will allow it
MOSCOW. Feb 14 (Interfax) - Russian alcohol market experts are against the idea of a state alcohol monopoly but will allow it. The matter was discussed at the AlcoCongress in Moscow on Tuesday.
"Monopolies are possible in different segments of the market - retail, production and turnover of spirit and alcohol production - especially if the decision is taken at government level," Vladimir Mishelovin, a Federal Antimonopoly Service department chief, said at the congress.
"This is not very good. FAS favors competition and where a monopoly appears there is no competition," he said.
"A state monopoly on the alcohol market is not necessary and will not lead to anything good," said State Duma Deputy Viktor Zvagelsky.
"However, for the sake of political ambitions and to the detriment of the real economy I do not rule out the possibility that the issue of a state monopoly will be raised not just at the level of populism, which it now is, but also quite seriously," he said. "And if we cannot contain the situation in the form of today's government regulation of the alcohol market, then the government will have no alternative than to introduce a state monopoly," he added.
"The business for all its current ambiguity must remain within a civilized framework, so the government does not resort to such a drastic measure as a monopoly," Zvagelsky said.
The chairman of the Alcoholic Beverages Producers Union, which includes leading vodka and liquor manufacturers, Dmitry Dobrov, said he "sincerely hopes" the issue of a state monopoly in the alcohol market "is discussed but not implemented. Our union is categorically against it and does not think a monopoly will resolve any problems on the market."
"But if this does happen, for example in retail, which is what is being discussed most of all, I hope the government will do it gradually, taking say one or two regions at a time," Dobrov said.
"There are almost no state alcohol monopolies in the world," said Alexander Romanov, the general director of the Alcohol Manufacturers Committee. "Many are citing the Swedish experience, but there the monopoly is only in retail, and that is on its way out," he said.