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RIA Novosti

Business

Russia might introduce state monopoly on ethyl alcohol sales

17:44 25/07/2005
MOSCOW, July 25 (RIA Novosti) - State Duma speaker Boris Gryzlov

called for the introduction of a state monopoly on sales of ethyl alcohol.

"The sales of ethyl alcohol should be controlled by the state," he told a news conference today.

Gryzlov said the State Duma has decided to form a working group, which will review proposals on this issue together with the Cabinet.

He added that the monopoly would be a federal state structure, which would control all ethyl alcohol sales.

Gryzlov said all the financial accounts of this group would be kept in the federal treasury. "It is the only way to control financial flows in this sphere," he said.

On July 22, the Russian president signed two federal laws aimed at strengthening state control over the sale of alcohol.

These laws introduced measures against dishonest manufacturers and wholesalers and strengthened control over the production and quality of ethyl alcohol.

According to these laws, only state-owned enterprises with charter capital of at least $330,000 will have the right to manufacture and sell ethyl alcohol and enterprises with charter capital of at least $165,000 will be allowed to produce vodka.

The laws abolish excise warehouses and special regional stamps.

"Currently we have more than 3,000 excise warehouses and only 300 producers; therefore, it will be easier for the state to control only producers," Gryzlov said.

He also said the laws establish a clear licensing mechanism for all businesses related to the production and sales of alcoholic beverages. Licenses for retail sales of alcoholic beverages will be issued by regional authorities, he said.

According to Gryzlov, the laws prohibit the sale of alcoholic beverages to minors. They also ban the sale of alcohol in kindergartens, schools, and universities, at municipal and cultural organizations, at sports facilities, and on public transportation.

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