Boris Yeltsin and the deadly vodka crisis

Boris Yeltsin will be remembered for orchestrating Russia’s transition from communism, but his fondness for vodka will always be part of his legacy. While Yeltsin’s admitted alcohol problems provided many comedic opportunities, his impact on the Russian vodka industry has created a crisis in Russia that continues to cripple the country today. A crisis that began when Yeltsin sold the Russian soul to Pernod-Ricard, one of the few companies that continues to collect independent spirits producers like Soviet paraphernalia. Yeltsin died of heart failure, but his favorite elixir continues to devastate the people of his country on a daily basis.

For starters, Yeltsin’s favorite vodka was reported to be Stolichnaya, but Yeltsin chose to share his preferred vodka and 42 other brands. In 1992, Yeltsin led a government effort that freed the vodka industry from state distribution restrictions. Unfortunately, this early act against communist ideology led to dizzying consumption due to the availability of numerous affordable vodkas. Amid deregulation, thousands of Russians died from inferior vodkas, previously bootlegged, and the looming problem of alcoholism threatened the fragile economy.

Recognizing this problem, the Russian government was forced to start regulating the production and import of vodka. Unfortunately, the smuggling market emerged bigger than ever, creating a wave of health risks that has poisoned the Russian population since the mid-1990s. Last November, the Russian government was even forced to declare state emergency in several regions due to the inability of hospitals to handle the large waves of people consuming contaminated vodka. To quantify the problem, the Russian government estimates that 42,000 Russians die from inferior vodkas each year. This situation represents the greatest threat to Russia’s future at a time when the country is expected to lose almost a third of its population by 2050. While part of this problem is related to the fact that abortions outnumber the births of From 13 to 10, the leading cause of death in Russia remains alcohol poisoning.

So why don’t Russians stop drinking vodka, right? Uhm… because they are Russian.

Russians drink vodka like Italians drink wine. Even the Russian army is given a ration of two shots of vodka a day. Quitting vodka is simply not a possibility; Unfortunately, Russia can’t just reverse the 1992 disaster of vodka deregulation. This unexpected development happened because during the reforms, the Russian government sold Stoli along with 40 other companies to SPI, a partner in the massive Pernod-Ricard corporation. The price was only $300,000, less than the combined cost Stoli spent on her Blueberry Vodka ad campaign! Russia tried to claim the companies, but has been unable to find loopholes in the legal agreements. Instead, Stoli and other companies are allowed to distill their product in Russia, but internationally distributed bottles must be bottled outside the country (now Latvia), a kind of punishment for disloyalty.

Other companies have started producing vodka in Russia with government support, but they are focused on the international market, not domestic consumers. These companies include Russian Standard, which produces Imperia. Vodka companies targeting the Russian market can be found primarily in Ukraine, and these companies often face poor cooperation from the Russian government and still do not represent a profitable alternative to the bootleg vodkas consumed by Russia’s poorest citizens. .

Normally, I would start by discussing some activist solution to help save the Russian people from these horrible vodkas, but to be honest, no solution appears in sight. Contaminated vodkas killed thousands of Russians during the deregulation period and through smuggling, so potential changes in government regulation seem futile. We could blame Pernod-Ricard for taking Russia’s only affordable sources of vodka, but $300,000 for Stoli and 42 other companies was a steal anyone would have taken. Furthermore, the Russian government continues to thwart any attempt by these companies to bring vodkas like Stoli back into everyday Russian.

Instead, the Russian government needs to promote cheap domestic production to ensure the safety of its citizens. Russian government support has focused on companies like Russian Standard, but its focus on the international market does not benefit the Russians. Assistance to Russian companies focused on international distribution and those that would target a domestic consumer are not mutually exclusive, a fact that must be understood by the Russian government.

Reflecting on these issues, I feel almost compelled to buy alternative vodkas with less deadly records, but doing so would only further harm the Russian population by negatively affecting Russian jobs at companies like Stoli. Remember, although these companies no longer target the Russian population as a customer base, the citizenry is still a valuable source of employees. In a country that already has low employment potential, disrupting even the smallest sources of employment is anything but beneficial.
The greatest tragedies of humanity are the most incomprehensible. The vodka epidemic ravaging Russia is one of the saddest due to the complex oppositions between monetary activities and human life or culture and the risks of vodka consumption. In such situations, the most viable alternative for those of us lucky enough to be out of the crisis is to collect the lessons that do exist.

This situation serves as a warning about the effects that large corporations can have on the alcohol industry. Pernod-Ricard could not have predicted the implications of its acquisition, and future purchases are unlikely to have remotely similar results. But, there is something to be said for supporting the smaller, more independent company to avoid disrupting the demand and cultural practices where our spirits come from. One need only look south of the border (or south on this blog if you want to read my article on the tequila industry) for other examples of how corporate takeovers and US demand can have detrimental results.

Also, the next time you drink your Russian vodka, consider the prime shot left in your glass. Unlike those that focus on smoothness through repetitive distillation, vodka from Russia has always had a certain burn and harshness that, while providing a distinct and preferable flavor, now exhibits a symbolic memorial. Yeltsin always appreciated his.

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