Liquor prices in Ukraine may rise, again

The Ministry of Economic Development and Trade of Ukraine proposes increasing the minimum wholesale and retail prices for certain types of alcoholic beverages.

The project assumes an increase in prices for vodka and liquor by 12.4-19.6%, whiskey, rum and gin – by 12%, cognac (brandy) – by 6.6-9.5%, and wine – by 4.5-13.5%, that's according to an explanatory note to the relevant draft resolution published on the ministry's website.

Officials explain the need for a price rise with a higher cost of production components like spirit and packaging.

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"Therefore, as of today, our minimum prices do not correspond to the real cost of liquor production and sale so they need to be adjusted," the ministry said.

The report notes that the basis for calculations was data on the cost of production over the second half of 2017, including material, general production, administrative and financial expenses of producers.

The ministry also recalled that in 2018 the excise tax on cognac was increased by 20% - from UAH 105.80 to UAH 126.96 per 1 liter of pure spirit.