Until recently, beer has not been considered an alcoholic
beverage in need of strict regulation, allowing it to gain market
share across Russia, with sales supplanting bottled water and
juice. The dynamic Russian beer market consequently attracted many
large beer producers to Russia. However, recent amendments to the
law have reclassified beer as an alcoholic beverage, which may
significantly affect the market.
Federal Law No. 218-FZ of July 18, 2011 "On the Amendments
to the Federal Law on the State Regulation of Production and
Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing
Products and Individual Legislative Acts of the Russian Federation
and Invalidation of the Federal Law on Restrictions of Retail Sale
and Consumption (Drinking) of Beer and Drinks Made on Its
Basis" (the "Alcohol Amendment Law") came into
effect on July 22, 2011, except for several provisions that will
gradually come into effect on January 1, 2012, July 1, 2012 and
January 1,
