German and Czech breweries were the leading suppliers of beer to Russia last year, despite the ongoing conflict in Ukraine and international sanctions. According to Russian state statistics cited by the RIA Novosti news agency, Germany retained its position as the largest exporter, while Czech exports to Russia surged. In contrast, Danish breweries, led by Carlsberg, have ceased exports entirely. Germany shipped 105,300 tonnes of beer to Russia between January and October 2024, remaining the top supplier despite a 24% year-on-year decline in exports. The Czech Republic followed as the second-largest supplier, with its beer exports rising by 27% to 33,100 tonnes during the same period. This increase translates to nearly 62 million pints, according to the Czech Statistical Office (ČSÚ). Russia ranked as the third most important market for Czech beer exports, trailing only Germany and Slovakia. The value of Czech beer exports to Russia in the first ten months of 2024 was slightly over CZK 819 million, a significant jump from CZK 613 million in 2019. “Despite the invasion of Ukraine and Western sanctions, the Czech Republic exported nearly two million more pints of beer to Russia last year. For the first time ever, the value of these exports surpassed one billion crowns,” said Lukáš Kovanda, chief economist at Trinity Bank. The surge in Czech beer exports to Russia has drawn criticism. Poland’s Rzeczpospolita daily remarked, “Czech brewers have no ethical doubts, putting profit above all else, regardless of the consequences.” Meanwhile, Chinese beer exports to Russia have grown significantly. China, which ranked sixth in 2023, rose to third place last year, exporting 29,800 tonnes of beer—a 1.6-fold increase. Lithuania followed in fourth place with 24,300 tonnes, while Belgium dropped to fifth after reducing shipments by a third to 18,400 tonnes. Poland, Latvia, Kazakhstan, the Netherlands, and Austria rounded out the top ten suppliers to Russia, collectively contributing to a robust beer trade despite geopolitical tensions. Russia’s domestic beer industry is also adapting to the changing landscape. The country’s largest brewer, Baltika, was seized from Denmark’s Carlsberg by the Kremlin and has since launched a new brand targeted at the Chinese market. Similarly, Russia’s second-largest brewer is producing beer for Chinese partners at its Khabarovsk plant in the Far East. Despite these efforts, Chinese imports of Russian beer have decreased by about 25% since early 2024, underscoring the competitive edge of foreign suppliers over Russian producers in the Chinese market. The contrasting strategies of various beer-exporting nations highlight the complexity of the global market amid geopolitical tensions. While Germany and the Czech Republic continue to profit from their Russian beer trade, others, like Denmark, have withdrawn entirely, reflecting differing stances on ethical and economic priorities. Source: CTK