Economic

Moldovan wine: From embargo to global markets

Declining exports, multi-million losses, and thousands of employees placed on temporary leave. The year 2006 was devastating for the wine sector, which lost its main market, Russia, after Moscow's first embargo on Moldovan wines.

However, the ban also catalyzed the transformation of the wine industry. Nineteen years later, with EU support, the country diversified its markets, and Moldovan wines met European quality standards. While in 2005, 90 percent of our wines went to Russia, today only 7 percent of the production reaches this market.

A Cricova wimaker felt the impact of the embargo in its early years, as Russia was one of its key markets. He did not despair and found new partners, so now he can boast export contracts in 37 countries. The wines produced by this winery now even reach the shelves of stores in Africa.

"We export 5 million bottles annually. Notably, in 2024, we increased exports by 10%, or 500,000 bottles. We're particularly pleased that this growth is in sparkling wines, our specialty. We plan to expand to markets in Africa, Asia, and South America," says Sorin Maslo, the winery's director.

Winemakers say the embargo was a tough but valuable lesson. They learned that dependence on a single market is a vulnerability, and diversifying markets is the best thing they could do to develop. Producers export to Romania, Germany, the Netherlands, Canada, Belgium, and even Japan.

"In the long run, our country ultimately benefited from the embargo. Before, many wineries produced wine for that market, requiring minimal attention beyond lab testing. After the embargo, numerous wineries emerged, focusing on quality. It's crucial for our country to promote our authentic grape varieties," states Vlada Vutcarău, the winery owner.

Following the embargo, the national brand "Wine of Moldova" was created to promote wines internationally, and investments in modern technologies increased the competitiveness of Moldovan products.

The European Union is now the primary destination, accounting for 60% of total exports, and Moldovan wines are sold in 75 countries. According to statistical data, Moldova is now the 20th largest wine producer and 14th largest wine exporter globally, ranking 8th in per capita wine production.

Translation by Iurie Tataru

Virginia Pîntea

Virginia Pîntea

Author

Read more