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Russia to see alcohol imports early July, market revival in fall

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MOSCOW, June 26 (RIA Novosti) - Russian retailers are expected to receive new supplies of imported alcoholic beverages in early July, but a drinks shortage will remain until this fall, alcohol sellers said Monday.

Imports of alcoholic drinks have stopped and bottles have started disappearing from shops across the country as retailers battle to beat a July 1 deadline for selling imported alcohol with old excise stamps.

"Wines are being sold at discount prices in Sedmoi Kontinent outlets," said Alexei Churakov, a spokesman for the supermarket network's marketing department, adding that new supplies of wines were expected by July.

He said that all goods unsold by July 1 would be returned to suppliers. Some supermarkets have already started returning unsold bottles.

Sellers have complained that new stamps stipulated under regulations that came into force earlier this year have been widely unavailable.

The Federal Customs Service drafted a resolution jointly with the Justice, Interior, Finance and Economic Development ministries last week allowing companies to re-register and sell their goods until December 29.

But the customs service said all beverages with old excise stamps must be returned at wholesale or importer's warehouses by July 1, otherwise they would be considered illegal and confiscated.

Vadim Drobiz, a spokesman for the Union of Alcohol Market Participants, said a failure to introduce new legislation following the introduction of new duties on January 1, 2006, was causing the main problems. He said beverages with new excise stamps accounted for only 5% of the market, and that importers were expecting products with old excise certificates to be returned.

"Stopping imports at the beginning of the year due to a lack of new stamps and the expectation of huge losses do not allow importers to bring in beverages or make major purchases even today when they have the stamps," he said.

The Federal Customs Service said new excise stamps had been available since late March, and explained the lack of beverages by the failure of companies that sell alcohol to purchase the necessary equipment to put new stamps on products.

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