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Russian Gov't Considers Takeover of Alcohol Industry
November 15, 2006

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News Summary

Reacting to a wave of alcohol poisonings, the Russian government is considering reestablishing its former monopoly over alcohol production and sales, the Times of London reported Nov. 13.

More than 17,000 Russians have died of alcohol poisoning in 2006, and both government health officials and politicians have suggested that reasserting government control may be the only way to control illegal alcohol sales and deadly moonshining. "It's not enough to ensure a state monopoly on the production and circulation of pure alcohol -- I think it's also time to raise the issue of a state monopoly on the sale of products that contain alcohol," said Duma Speaker Boris Gryzlov.

President Vladimir Putin has expressed support for the idea, as well. However, a spokesperson for Russia's liquor trade association said, "It would be very hard to organize a state monopoly in practice. The State has no experience of the industry and it wouldn't stop people dying from alcoholism."

In fact, a new state regulatory scheme on alcohol has been blamed for driving small companies out of business because of bureaucratic delays in licensing, creating alcohol shortages that critics say has led to more deaths from consumption of bad liquor and substances like lighter fluid.

The Russian government controlled alcohol sales for centuries, and it was a major source of government income well into the 1980s. 

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