(MENAFN) In a surprising turn of events, Latvia has claimed the title of Russia's largest whisky supplier, outperforming all other exporters combined and reaching a staggering USD250 million in sales last year, as reported by RIA Novosti on Monday, citing industry data. This achievement is particularly noteworthy given the strained relations and Western sanctions between Latvia and Russia.

Despite heightened tensions, Latvia significantly increased its shipments of spirits to Russia, with the Baltic nation accounting for an impressive 73 percent share in the total volume of whisky supplied to Russia in 2023, amounting to USD251.2 million, according to industry data.

This revelation raises questions about the complex dynamics between Latvia and Russia, especially considering Latvia's vocal support for Ukraine and its active participation in advocating for European Union sanctions against Russia.

John Wright of the Moral Rating Agency provided insight into this paradox, stating, "Latvia has been a vocal supporter of Ukraine and joined in pushing for European Union sanctions against Russia... At the same time, Latvia continues to serve as Russia’s primary source of whiskey, accounting for more than 70 percent of all Russian whiskey imports during 2023," in an interview with Euronews.

Western experts suggest that Latvia is acting as a crucial "gateway" for Western spirits companies seeking access to the Russian market. Latvia appears to function as a middleman for companies that are hesitant to directly sell their products to Russia amidst the ongoing conflict with Ukraine.

Latvia's Baltic neighbor, Lithuania, also played a notable role in this unexpected trend, delivering USD39 million worth of whisky last year. The United Kingdom secured the third position with USD14.8 million in whisky exports to Russia. France and Armenia followed as the fourth and fifth top suppliers, each contributing around USD7 million.

The total value of whisky shipments to Russia in 2023 amounted to USD344.2 million, according to the outlet. As Latvia takes the lead in this surprising trade dynamic, the geopolitical and economic implications of such a partnership between a European Union member state and Russia are likely to be closely scrutinized in the coming months.
 

MENAFN21022024000045015687ID1107879733